Muthoot Finance NCD Company Profile:
Muthoot Finance is a prominent non-banking financial company in India that specializes in providing secured personal and business loans to individuals such as small businessmen, vendors, traders, farmers, and salaried individuals who possess gold jewelry but face challenges in accessing formal credit within a reasonable time frame or might not have access to credit at all to fulfill short-term liquidity requirements. As per the ICRA Analytics Industry Report 2021, Muthoot Finance holds the distinction of having the most extensive branch network among gold loan NBFCs in India, as of March 31, 2021.
Muthoot Finance Limited is coming out with a debt offering of Secured Redeemable Non-Convertible Debentures with a face value of Rs. 1000 each, Base Issue size of ₹ 75 Crore with an option to retain oversubscription up to ₹ 225 Crores aggregating up to ₹ 300 crores being the Tranche-I Issue size. The issue opens for subscription on Wednesday, 12th April 2023, and will close on or before Wednesday, 26th April 2023. The allotment is on a first come first serve basis with the minimum application to be made is of 10 NCDs. A minimum of 75% of the Net Proceeds raised through this Tranche-I Issue will be utilized For the purpose of lending and the remaining 25% for general corporate purposes.
Muthoot Finance NCD Details:
| Tranche I Issue opens: | Wednesday, 12th April 2023 | ||||
| Tranche I Issue closes: | Wednesday, 26th April 2023 | ||||
| Allotment: | First Come First Serve Basis | ||||
| Face Value: | ₹ 1,000 per NCD | ||||
| Nature of Instrument: | Secured Redeemable Non-Convertible Debenture (“NCDs”) | ||||
| Minimum Application: | 10 NCDs (₹ 10, 000) & in multiple of 1NCD | ||||
| Listing: | Proposed on BSE | ||||
| Credit Rating: | “[ICRA] AA+/Stable (pronounced as ICRA Double A plus rating with stable outlook) | ||||
| Tranche I Issue Size: | Public issue by Muthoot Finance Limited (“the Company”) of NCDs for an amount of ₹ 75 crore with an option to retain oversubscription up to ₹ 225 crore aggregating up to ₹ 300 crore | ||||
| Registrar: | Link Intime India Pvt Ltd | ||||
| Category | I – Institutional (“QIB”) | II – Non-Institutional (“Corporates”) | II – High Net worth
Individual (“HNI”) (Amount aggregating to above ₹ 10 lakh) |
II – Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh) | |
| Category Allocation of the overall Issue Size | 5% | 5% | 40% | 50% | |
| Bucket Size (₹) assuming Issue size of ₹ 300 Cr | ₹ 15 Cr | ₹ 15 Cr | ₹ 120 Cr | ₹ 150 Cr | |
Muthoot Finance Limited NCD
Application form
Muthoot Finance NCD Specific Terms of the Prospectus:
The terms of the NCDs offered under the Issue are as follows:
| Series | I | II | III | IV | V | VI | VII |
| Frequency of Interest Payment | Monthly* | Monthly* | Annual** | Annual** | Annual** | NA | NA |
| Tenor | 37 months | 61 months | 25 months | 37 months | 61 months | 37 months | 61 months |
| Base Coupon Rate (% p.a.) for NCD Holders in: | |||||||
| Category I, II, III & IV | 7.75% | 7.85% | 7.75% | 8.00% | 8.10% | NA | NA |
| Coupon Rate (%p.a.) with Additional incentive on Base Coupon Rate on any Record Date as applicable to Category III & IV | |||||||
| Category I, & II | 7.75% | 7.85% | 7.75% | 8.00% | 8.10% | NA | NA |
| Category III & IV | 8.25% | 8.35% | 8.25% | 8.50% | 8.60% | NA | NA |
| Effective Yield (% p.a.) for : | |||||||
| Category I & II | 7.75% | 7.85% | 7.75% | 8.00% | 8.10% | 8.00% | 8.10% |
| Category III & IV | 8.25% | 8.35% | 8.25% | 8.50% | 8.60% | 8.50% | 8.60% |
| Amount (₹ / NCD) on Maturity for ^ : | |||||||
| Category I & II | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,268.11/- | ₹1,486.11/- |
| Category III & IV | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,286.34/- | ₹1,521.42/- |
*- With respect to Options where interest is to be paid on a monthly basis, relevant interest will be calculated on the face value of the NCDs from the first day till the last date of every month during the tenor of such NCDs, and paid on the first day of every subsequent month. For the first interest payment for NCDs under the monthly options, interest from the Deemed Date of Allotment till the last day of the subsequent month will be clubbed and paid on the first day of the month next to that subsequent month. The last interest payment under monthly options will be made at the time of redemption of the NCDs.
**- With respect to Options where interest is to be paid on an annual basis, relevant interest will be paid on each anniversary of the Deemed Date of Allotment on the face value of the NCDs. The last interest payment under annual Options will be made at the time of redemption of the NCDs
For any queries related to the NCD, you can consult the team at Elite Wealth. Since Demat is mandatory for investing in this particular NCD from NHIT, the investor must open a Demat account with a trusted broker like Elite Wealth.