Muthoot Fincorp Limited NCD Company Profile:
Muthoot Fincorp Limited (“MFL”) is a non-deposit-taking, systemically important NBFC registered with the RBI. The company primarily offers personal and business loans secured by gold ornaments and jewelry. As of September 30, 2023, the company had ~31.68 lakhs of loan accounts in its gold loan portfolio and had employed 20,507 individuals, including 91 contracted experts, in its operations and operated 3,619 branches throughout 24 states, as well as the National Capital Territory of Delhi and the Union Territory of Andaman and Nicobar Islands. In addition to the products offered by other Group companies, it also provides a wide range of financial services and products, including Gold Loans, Small Business Loans, Affordable Housing Loans, Two-Wheel Finance, Used-Car Finance, Domestic Money Transfer, International Remittance, Foreign Exchange, Insurance Products & Services, Wealth Management Services, and more for the general public.
Muthoot Fincorp Limited is coming up with a public issue by the company of secured, redeemable, non-convertible debentures of face value ₹ 1,000 each (“NCDs” or “debentures”), for an amount up to ₹100 crores (“base issue size”) with an option to retain oversubscription up to ₹260 crores, aggregating up to ₹360 crores is being offered by way of this prospectus. The issue opens for subscription on Wednesday, 10th April, 2024, and will close on Thursday, 25th April, 2024. The allotment is on a first come first serve basis with the minimum application to be made is of 10 NCDs.
Muthoot Fincorp Limited NCD Details:
| Issue opens: | Wednesday, 10th April, 2024 | ||
| Issue closes: | Thursday, 25th April, 2024 | ||
| 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 1 NCD thereafter | ||
| Listing: | BSE | ||
| Credit Rating: | CRISIL AA-/Stable | ||
| Issue Size: | Public issue by Muthoot Fincorp Limited (“the Company”) of secured, rated, listed, redeemable, non-convertible debentures of face value of ₹ 1,000 each (“NCDs”) for an amount up to ₹100 crores (“Base Issue Size”) with an option to retain oversubscription up to ₹260 crores (“Green Shoe Option”), aggregating up to ₹360 crores. | ||
| Registrar: | Integrated Registry Management Services Private Limited | ||
| Category | I – Institutional (“QIB”) | II – Non-Institutional (“Corporates & HNI”) | IV – Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh) |
| Category Allocation of the overall Issue Size | 5% | 35% | 60% |
| Bucket Size (₹) assuming Issue size of ₹ 360 Cr | ₹ 18 Cr | ₹ 126 Cr | ₹ 216 Cr |
Muthoot Fincorp Limited NCD
Application form
Muthoot Fincorp Limited NCD Specific Terms of the Prospectus:
| Series | I | II | III | IV | V | VI* | VII | VIII | IX | X | XI | XII | XIII |
| Frequency of Interest Payment | Monthly | Monthly | Monthly | Monthly | Annual | Annual | Annual | Annual | Cumulative | Cumulative | Cumulative | Cumulative | Cumulative |
| Tenor | 26 Months | 38 Months | 60 Months | 72 Months | 26 Months | 38 Months | 60 Months | 72 Months | 26 Months | 38 Months | 60 Months | 72 Months | 94 Months |
| Coupon (% per annum) for NCD Holders in all Categories | 8.90% | 9.15% | 9.35% | 9.55% | 9.25% | 9.50% | 9.75% | 10% | NA | NA | NA | NA | NA |
| Effective Yield (% per annum) for NCD Holders in all Categories | 9.26% | 9.54% | 9.75% | 9.97% | 9.27% | 9.52% | 9.74% | 10% | 9.27% | 9.52% | 9.74% | 10% | 9.25% |
| Amount (₹ / NCD) on Maturity for NCD Holders in all Categories | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,212/- | ₹ 1,334/- | ₹ 1,592/- | ₹ 1,772/- | ₹ 2,000/- |
*The Company shall allocate and allot Series VI NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
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, the investor must open a Demat account with a trusted broker like Elite Wealth.