Muthoot Finance Limited NCD Company Profile:
Muthoot Finance Limited is the largest gold loan NBFC in India in terms of loan portfolio. According to the CRISIL Limited, CRISIL Research Industry Report on Gold Loans in March 2023, were ranked the largest gold loan NBFC. They provide personal loans and business loans secured by gold jewelry, or Gold Loans, primarily to 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 CRISIL Research – Industry Report on Gold Loans in March 2023 the branch network was the largest among gold loan NBFCs in India. The Gold Loan portfolio as of September 30, 2023 comprised approximately 8.52 million loan accounts in India that we serviced through 4,745 branches across 22 states, the national capital territory of Delhi and six union territories in India.
Muthoot Finance Limited is coming out with a debt offering of Secured Redeemable Non-Convertible Debentures with a face value of Rs. 1000 each, a Base Issue size of ₹ 100 Crore, and an option to retain oversubscription up to ₹ 900 Crore aggregating up to ₹ 1000 crores. The issue opens for subscription on Monday, 8th January 2024, and will close on or before Friday, 19th January 2024. 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 Issue will be utilized For lending and the remaining 25% for general corporate purposes.
Muthoot Finance Limited NCD Details:
| Issue opens: | Monday, 8th January 2024 | ||||
| Issue closes: | Friday, 19th January 2024 | ||||
| Allotment: | First Come First Serve Basis | ||||
| Face Value: | Rs.1,000 per NCD | ||||
| Nature of Instrument: | Secured Redeemable Non-Convertible Debentures | ||||
| Minimum Application: | 10 NCDs (Rs.10, 000) & in multiple of 1NCD | ||||
| Listing: | BSE | ||||
| Credit Rating: | “[ICRA] AA+/Stable (pronounced as ICRA Double A plus rating with stable outlook)” | ||||
| Issue Size: | Public issue by Muthoot Finance Limited (“the Company”) of NCDs for an amount of ₹ 100 crores with an option to retain oversubscription up to ₹ 900 crores aggregating up to ₹ 1000 crores | ||||
| Put/Call Option: | There is no put/call option for the NCDs | ||||
| Category | I – Institutional (“QIB”) | II – Non-Institutional (“Corporates”) | III – High Net worth
Individual (“HNI”) (Amount aggregating to above ₹ 10 lakh) |
IV – Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh) | |
| Category Allocation of the overall Issue Size | 5% | 30% | 30% | 35% | |
| Bucket Size (₹) assuming Issue size of ₹ 1000 Cr. | ₹ 50 Cr | ₹ 300 Cr | ₹ 300 Cr | ₹ 350 Cr | |
Muthoot Finance Limited NCD
Application form
The terms of the NCDs offered under the Issue are as follows:
Specific Terms of the Prospectus:
| Series | I | II | III | IV | V | VI | VII |
| Frequency of Interest Payment | Monthly | Monthly | Annual | Annual | Annual | NA | NA |
| Tenor | 36 months | 60 months | 24 months | 36 months | 60 months | 36 months | 60 months |
| Base Coupon Rate (% p.a.) (A) for NCD Holders in: | |||||||
| Category I, II, III & IV | 8.25% | 8.25% | 8.25% | 8.50% | 8.50% | NA | NA |
| Additional Incentive on Base Coupon (% per annum) on any Record Date as applicable to Category III & IV Investors (B) NCD Holders in: | |||||||
| Category III & IV | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | NA | NA |
| Aggregate of the Coupon Rate and the additional incentive above the Coupon Rate on any Record Date as applicable to Category III and Category IV investors {(A) + (B)} | |||||||
| Category I | 8.25% | 8.25% | 8.25% | 8.50% | 8.50% | NA | NA |
| CategoryII, III & IV | 8.75% | 8.75% | 8.75% | 9.00% | 9.00% | NA | NA |
| Effective Yield (% p.a.) for : | |||||||
| Category I & II | 8.25% | 8.25% | 8.25% | 8.50% | 8.50% | 8.50% | 8.50% |
| Category III & IV | 8.75% | 8.75% | 8.75% | 9.00% | 9.00% | 9.00% | 9.00% |
| Amount (₹ / NCD) on Maturity for ^ : | |||||||
| Category I & II | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,277.29/- | ₹ 1,503.66/- |
| Category III & IV | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,000/- | ₹ 1,295.03/- | ₹ 1,538.62/- |
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.AS