Muthoot Finance NCD Detail | Muthoot Finance Limited NCD 2020

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

    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
    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)

    1. A.K. Capital Services Limited
    2. Edelweiss Financial Services Ltd
    3. Equirus Capital Private Limited
    4. 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

    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