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Muthoottu Mini Financiers NCD Offer - Feb 2015 (Avoid)

Muthoottu Mini Financiers Limited Logo

Muthoottu Mini Financiers is a frequent debt market visiting company from South is once again coming out with its Secured Redeemable, Non-Convertible Debentures and Unsecured Redeemable Non-convertible Debentures of face value of Rs. 1000 each with a base size of Rs. 125 crore with a greenshoe option of retaining 100% oversubscription and thus making the overall size of Rs. 250 crore. Minimum application is to be made for 10 NCDs and in multiples of 1 NCD thereon, thereafter. Issue opens on 24.02.15 and will close on or before 25.03.15. Vivro Financial Services Pvt Ltd is the sole lead manager to the offer. Link Intime India Pvt Ltd is the registrar and IL&FS Trust Co. Ltd is the debenture trustee for this offer. Post allotment, these NCDs will be listed on BSE. This offer is graded Ind RA BB+ indicating moderate risk of default regarding timely servicing of financial obligations.

The company has offered seven options under this offer that has tenure ranging 500 days, 36 months, 42 months and 68 months. The coupon rate ranging between 11.50% to 12% and existing debenture holders, ex-servicemen and Senior Citizens are offer 0.25% extra. Yield ranges from 11.75% to 13.01% depending on the choice of tenure and interest payment options as Monthly, Annual and Cumulative. Although this issue is available in demat as well as physical mode, trading will take place only in demat mode.

On the performance front, the company has suffered a severe setback with a drop of nearly 62% in bottom-line based on first-half results. The company is highly indebted for its funds.


Conclusion / Investment Strategy

Considering poor grading, declining profits and rising debt, this lucrative offer is not worth. However, investors can invest in this risky offer at their own discretion.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Dec 9, 2019

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

The Muthoottu Mini Financiers NCD Feb 2015 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if Muthoottu Mini Financiers NCD Feb 2015 worth investing. The Muthoottu Mini Financiers NCD Feb 2015 Note sets the NCD expectations in systematic way which tells you if Muthoottu Mini Financiers NCD Feb 2015 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Muthoottu Mini Financiers NCD Feb 2015 by providing NCD recommendations i.e. subscribe, avoid and neutral.