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Muthoottu Mini Financiers 3rd NCD offer - Sep 2014 (Avoid)

Muthoottu Mini Financiers Limited Logo

Muthoottu Mini Financiers Ltd (MMFL) is once again coming out with its NCD offer that opens on 29.09.14 and will close on or before 28.10.14. It is offering NCD having face value of Rs. 1000 each with coupon rate ranging from 11.50% to 12.75%. Existing debenture holders are offered 0.25% additional coupon rate. These NCDs have tenure of 18, 36,42 and 66 months with Monthly, Annual and Cumulative options. This is the third offer in this calendar year from this company.

The base size of the offer is Rs. 150 crore with a green shoe option to retain 100% oversubscription. However, the company hopes to raise minimum subscription of 112.50 crore (i.e. 75% of the base issue size). Application is to be made for a minimum of 10 NCDs (i.e. Rs. 10000) and in multiples of 1 NCD thereon, thereafter.

Issue is lead managed by Vivro Financial Services Pvt Ltd and Link Intime India Pvt Ltd is the registrar to the issue. IL&FS Trust Company Ltd is the debenture trustee. Post allotment, these NCDs will be listed on BSE. Although allotment is available in demat or physical mode, trading will take place only in demat mode.

This debt offer is rated BB+ by IND -RA, indicating moderate risk of default regarding timely servicing of financial obligations.

Conclusion / Investment Strategy

Considering poor rating, it is better to keep away from this NCD offer.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on December 10, 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.


The Muthoottu Mini Financiers NCD Sept 2014 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 Sept 2014 worth investing. The Muthoottu Mini Financiers NCD Sept 2014 Note sets the NCD expectations in systematic way which tells you if Muthoottu Mini Financiers NCD Sept 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Muthoottu Mini Financiers NCD Sept 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.


2. MOHANDASPANIKKER     Link|November 6, 2014 11:23:15 AM
Why Dilip has written like this ???Muthoottu mini is doing well. Its assets are secured
1. MOHANDASPANIKKER     Link|November 6, 2014 11:13:15 AM
Dilip Davda is wrong