Muthoot Finance is one of the largest Gold Loan NBFCs in India. It provides personal loans and business loans secured by gold jewelry, primarily to individuals like small businessmen, vendors, traders, farmers, and salaried individuals, who possess gold jewelry but are not able to access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements. According to the ICRA Analytics Industry Report 2021, as of March 31, 2021, Muthoot Finance’s branch network was the largest among gold loan NBFCs in India.
Muthoot Finance Limited NCD
Application Form
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 ₹ 100 Crore with an option to retain oversubscription up to ₹ 400 Crores aggregating up to ₹ 500 crores being the Tranche-V Issue size. The issue opens for subscription on Wednesday, 8th February 2023, and will close on or before Friday, 3rd March 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-V Issue will be utilized For the purpose of lending and the remaining 25% for general corporate purposes.
Muthoot Finance Limited NCD Issue Details
| Tranche V Issue opens: | Wednesday, 8th February 2023 | ||||
| Tranche V Issue closes: | Friday, 3rd March 2023 | ||||
| Allotment: | First Come First Serve Basis | ||||
| Face Value: | ₹ 1,000 per NCD | ||||
| Nature of Instrument: | Secured Redeemable Non-Convertible Green Municipal Bonds | ||||
| Minimum Application: | 10 NCDs (₹ 10, 000) & in multiple of 1NCD | ||||
| Listing: | Proposed on BSE | ||||
| Credit Rating: | AA+/Stable” by ICRA | ||||
| Tranche V Issue Size: | Base Issue size of ₹ 100 Crore with an option to retain oversubscription up to ₹ 400 Crore aggregating up to ₹ 500 crore being the Tranche-V Issue size. | ||||
| 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 ₹ 500 Cr | ₹ 25 Cr | ₹ 25 Cr | ₹ 200 Cr | ₹ 250 Cr | |
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 | Cumulative | Cumulative |
| 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/- |
As regards the payment of additional incentive, such additional incentive shall be payable to only such NCD Holders who shall be individuals as on the Record Date.
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.