Muthoot Finance Ltd plans to raise funds through public issue of NCD ( Secured Redeemable Non-Convertible Debentures ) with a face value of Rs 1,000 each. The issue is with a base issue size of Rs 100 crore with an option to retain over subscription up to Rs 900 crore aggregating up to tranche limit of Rs 1,000 crore, the company said.
The NCDs are proposed to be listed on BSE. The allotment will be on a first-come-first-serve basis. There are six investment options for Secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments with coupon ranging from 6.75 percent p.a to 7.75 percent p.a.
The issue will open on December 11, 2020, and close on January 5, 2021, with an option to close on such earlier date or extended date as may be decided by the Board of Directors or NCD committee, Muthoot said.
Muthoot Finance NCD Dec 2020 Detail:
| Issue Open | Dec 11, 2020 - Jan 5, 2021 |
| Security Name | Muthoot Finance Ltd |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 100.00 Crores |
| Issue Size (Shelf) | Rs 900.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | "AA (Stable)" by ICRA and "AA/Positive" by CRISIL |
| Tenor | 38 months and 60 months |
| Series | |
| Payment Frequency | Monthly or Annual |
| Basis of Allotment | First Come First Serve Basis |
Muthoot Finance NCD Terms of Each Instrument
| Option/Series | I | II | III | IV | V | VI |
|---|---|---|---|---|---|---|
| Tenor | 38 months | 60 Months | 38 months | 60 Months | 38 months | 60 Months |
| Interest Frequency | Monthly | Monthly | Annual | Annual | NA | NA |
| Coupon Rate (% p.a.) Cat I, II, III, IV | 6.75% | 7.10% | 7.00% | 7.35% | NA | NA |
| Effective Yield (% p.a.) Cat I, II | 6.75% | 7.10% | 7.00% | 7.35% | 7.00% | 7.35% |
| Effective Yield (% p.a.) Cat III, IV | 7.15% | 7.50% | 7.40% | 7.75% | 7.40% | 7.75% |
| Amount(₹/NCD) on Maturity - Cat I, II | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,239.34 | ₹1,425.64 |
| Amount(₹/NCD) on Maturity - Cat III, IV | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,254.11 | ₹1,452.40 |
Muthoot Finance NCD Allocation Ratio
| Category | NCD's Allocated |
|---|---|
| Category 1 (QIB) | 0% |
| Category 2 (NII) | 0% |
| Category 3 (HNI) | 0% |
| Category 4 (RII) | 0% |
Muthoot Finance NCD's Offered
| Category | NCD's Reserved |
|---|---|
| Category 1 (QIB) | 50,000 |
| Category 2 (NII) | 50,000 |
| Category 3 (HNI) | 300,000 |
| Category 4 (RII) | 600,000 |
| Total NCD's | 1,000,000 |
Muthoot Finance NCD Rating Detail
ICRA has assigned [ICRA]AA rating with a Stable outlook, assigned to the captioned Non-Convertible Debenture Programme of the company. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Within this category rating modifier {"+" (plus) or "-" (minus)} can be used with the rating symbols. The modifier reflects the comparative standing within the category.
CRISIL has assigned its CRISIL AA/Positive rating Proposed Issuance of Long Term Principal Market Linked Debentures of Muthoot Finance Limited. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
Objects of the Issue:
The Net Proceeds raised through the Tranche II Issue will be utilised for following activities in the ratio provided as below:
1. For the purpose of lending: minimum of 75% of the amount raised and allotted in the Issue
2. For General Corporate Purposes: shall not exceed 25% of the amount raised and allotted in the Issue
About Muthoot Finance
Incorporated in 1997, Muthoot Finance Ltd offers business loans secured by gold jewelry (gold loans) to meet unanticipated or other short-term liquidity requirements. Muthoot Finance India's largest gold financing company in terms of the loan portfolio.
The company primarily caters to individuals who possess gold jewelry but cannot access formal credit within a reasonable time, or for whom credit may not be available at all. The company served over 70 crore customers till Oct 2020 (including repeat customers) and serving over 2.5 Lakh customers daily.
Muthoot Finance Limited (MFL) is the flagship company of the Kerala-based business house, The Muthoot Group, which has diversified operations in financial services, healthcare, real estate, education, hospitality, power generation and entertainment. MFL was incorporated in 1997 and is India's largest gold loan focussed NBFC with total loan assets (standalone) of Rs. 41,296 crore and 4,573 branches as on June 30, 2020. The company derives a major proportion of its business from South India (48% of the total portfolio as on June 30, 2020), where gold loans have traditionally been accepted as a means of availing short-term credit, although MFL has increased its presence beyond South India over the past few years.
Muthoot Finance NCD Dec 2020 Prospectus
Muthoot Finance Prospectus
Muthoot Finance NCD Dec 2020 Lead Manager(s)
- A.K. Capital Services Limited
- Edelweiss Financial Services Ltd
- Equirus Capital Private Limited
- JM Financial Consultants Private Limited
Muthoot Finance Ltd Contact Information
Muthoot Finance Ltd
2nd Floor, Muthoot Chambers,
Opp Saritha Theatre Complex,
Banerji Road, Kochi 682 018, India
Phone: +91 484 239 4712
Email: ncd@muthootgroup.com
Website: https://www.muthootfinance.com/
Muthoot Finance NCD Dec 2020 Registrar
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai - 400083
Phone: +91-22-4918 6270
Email: mfl.ncd2020@linkintime.co.in
Website: http://www.linkintime.co.in
