Muthoot Fincorp Limited NCD Details, Issue Price, Date, And Interest Details

Muthoot FinCorp Ltd launched a non-convertible debenture (NCD) issue, offering yields up to 9.40% for a five-year tenor, on Monday. You can opt for monthly, annual, or cumulative interest payment options.

The issue which opened on 31st December 2020 will remain open till 25th January 2021. The NCD is being offered in tenors ranging from 27 months to 72 months and is rated “A” by CRISIL. The issue size is ₹200 crore, with the company retaining the right to keep an additional ₹200 crore from the proceeds.

    muthoot fincorp ncd details

    Muthoot Fincorp NCD December 2020 Detail

    Issue Open Dec 31, 2020 - Jan 25, 2021
    Security Name Muthoot Fincorp Limited
    Security Type
    Issue Size (Base) Rs 200.00 Crores
    Issue Size (Shelf) Rs 200.00 Crores
    Issue Price Rs 1000 per NCD
    Face Value Rs 1000 each NCD
    Minimum Lot size 10 NCD
    Market Lot 10 NCD
    Listing At BSE
    Credit Rating CRISIL A/ Stable
    Tenor 27, 38, 60 and 72 months
    Series Series I to Series IX
    Payment Frequency Monthly, Yearly or Cumulative
    Basis of Allotment First Come First Serve Basis

    Muthoot Fincorp NCD Allocation Ratio

    Category NCD's Allocated
    Category 1 (QIB) 0%
    Category 2 (NII) 0%
    Category 3 (HNI) 0%
    Category 4 (RII) 0%

    Muthoot Fincorp NCD Coupon Rates for Eash Series

    Series 1 Series 2 Series 3 Series 4 Series 5 Series 6 Series 7 Series 8 Series 9
    Frequency of Interest Payment Monthly Monthly Monthly Monthly Annually Cumulative Cumulative Cumulative Cumulative
    Tenor 27 Months 38 Months 60 Months 72 Months 72 Months 27 Months 38 Months 60 Months 72 Months
    Coupon Rate (Retail) 8.25% 8.50% 8.75% 9.00% 9.40% NA NA NA NA
    Effective Yeild (Annually) 8.57% 8.84% 9.10% 9.38% 9.40% 8.58% 8.84% 9.10% 9.40%
    Amount on Maturity ₹1,000 ₹1,000 ₹1,000 ₹1,000 ₹1,000 ₹1,203 ₹1,370 ₹1,546 ₹1,714

    Muthoot Fincorp NCD Rating Detail

    Experts have taken a cautious view of the NCD due to its A rating (rather than AA or AAA). “At a time when default related issues have been a concern and economic situation remains uncertain, investing in Muthoot, which has a Crisil A rating, is only for those who have a high-risk appetite. Investors should not subscribe to it by only looking at the attractive interest rates, and they must be sure to factor in the element of high risk while taking a decision. Overall, unnecessary risk on the fixed-income side of the portfolio should be avoided,” said Prableen Bajpai, founder, FinFix, a financial research and wealth management firm.

    Anand K. Rathi, founder partner, Augment Capital Advisors LLP, highlighted that the company’s non-gold exposure is a concern. “Those who really want to invest should stick to the smallest tenor of 27 months and choose the monthly interest option,” he said.

    About Muthoot Fincorp

    Incorporated in 1997, Muthoot Fincorp Limited is a non-deposit taking NBFC. The company is primarily engaged in the business of offering personal and business loans which are secured by gold ornaments and jewellery.

    The gold loan product is available for personal and business purposes to meet short-term liquidity requirements of the individuals. Currently, Company operates 3541 branches located across 20 states, including union territory of Andaman and Nicobar Islands and the national capital territory of Delhi and employed 16,025 employees including 255 contracted experts in its operations.

    Some of the Gold Loan products offered by the company are:
    1. Muthoot Blue Guide Gold loan
    2. Muthoot Blue Bright Gold loan
    3. Muthoot Blue Power Gold loan
    4. Muthoot Blue Bigg Gold loan
    5. Muthoot Blue Smart Gold loan
    6. 24x7 Express Gold loan

    In addition to the Gold loan business, the Company provides foreign exchange conversion and money transfer services as sub-agents of various registered money transfer agencies. Muthoot Fincorp is also engaged in the following business:
    1. Generation and sale of wind energy through its wind farms located in Tamil Nadu; and
    2. Real estate business through joint venture developers of the company-owned land parcels.

    Company Promoters

    • Thomas John Muthoot, 
    • Thomas George Muthoot
    • Thomas Muthoot 

    Company Financials

    Summary of financial Information (Restated Consolidated)

    Particulars For the year/period ended (? in Lakhs)
    31-Mar-20 31-Mar-19
    Total Assets 21,24,037.28 18,37,609.22
    Total Revenue 3,75,868.09 3,35,376.33
    Profit After Tax 25,792.81 37,261.16

    Objects of the Issue:

    The following objects are proposed to be financed from the Net Proceeds:

    1. Working capital purposes
    2. General corporate purposes

    Muthoot Fincorp NCD December 2020 Prospectus

    • Red Herring Prospectus

    Company Contact Information

    Muthoot Centre,
    TC No 14/2074-7 Punnen Road Trivandrum - 695 039
    Kerala, India

    Phone: +91 471 491 1550

    Muthoot Fincorp NCD December 2020 Registrar

    2 nd Floor,
    Ramakrishna Street, North Usman Road,
    T. Nagar, Chennai - 600 017

    Phone: + 91 44 2814 0801 to 803

    Muthoot Fincorp NCD FAQs

    • When is Muthoot Fincorp NCD December 2020 public issue coming?

      The Muthoot Fincorp NCD December 2020 issue opens on Dec 31, 2020, and closes on Jan 25, 2021, for the subscription.

      Note that the public issue of NCD is closed early in case it is fully subscribed (base + shelf) before its issue closing day.The allotment is done on a First Come First Serve Basis.

    • What is Muthoot Fincorp NCD December 2020 timetable?

      Muthoot Fincorp Limited NCD IPO dates are as below:

      Muthoot Fincorp NCD December 2020 Issue Timetable

      Bid/Offer Opens OnDec 31, 2020
      Bid/Offer Closes OnJan 25, 2021
      Record Date
      Deemed Date of Allotment
    • Where can I get the Muthoot Fincorp NCD December 2020 issue prospectus pdf?

      Sorry, Muthoot Fincorp NCD December 2020 DRHP PDF Document is not available at this time.

    • What is Muthoot Fincorp NCD December 2020 price? Tell me the pricing of Muthoot Fincorp Limited NCD issue?

      Muthoot Fincorp NCD December 2020 price is set at ₹1000 per NCD.
    • What is the face value of Muthoot Fincorp NCD December 2020?

      The NCD's will be issued at a face value of ₹1000 each NCD.
    • What is the frequency of interest payment for Muthoot Fincorp NCD December 2020?

      The frequency of payment for Muthoot Fincorp NCD December 2020 is Monthly, Yearly or Cumulative.
    • What is the minimum application size for investment in Muthoot Fincorp NCD December 2020 public issue?

      Each application should be for a minimum of 10 NCD's and multiples of 10 NCD thereof.
    • What is Muthoot Fincorp NCD December 2020 closing time?

      Muthoot Fincorp NCD December 2020 remain open for subscription on working days from 10:00 a.m. to 5:00 p.m until Jan 25, 2021. The bid may close earlier in case it is fully subscribed.