Muthoot Fincorp Ltd launched a non-convertible debenture (NCD) issue, offering yields up to 9.40% for a five-year tenor, on Thursday. You can opt for monthly, annual, or cumulative interest payment options.
The issue which opened on 18th February 2021 will remain open till 09th March 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 ₹150 crore, with the company retaining the right to keep an additional ₹150 crore from the proceeds.
Muthoot Fincorp NCD February 2021 Detail
| Issue Open | Feb 18, 2021 - Mar 09, 2021 |
| Security Name | Muthoot Fincorp Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) and/or Unsecured Subordinated Non-Convertible Debentures (Unsecured NCDs) |
| Issue Size (Base) | Rs 150.00 Crores |
| Issue Size (Shelf) | Rs 150.00 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:
- Muthoot Blue Guide Gold loan
- Muthoot Blue Bright Gold loan
- Muthoot Blue Power Gold loan
- Muthoot Blue Bigg Gold loan
- Muthoot Blue Smart Gold loan
- 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:
- Generation and sale of wind energy through its wind farms located in Tamil Nadu; and
- 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 February 2021 Prospectus
- Red Herring Prospectus
Company Contact Information
Muthoot Centre,TC No 14/2074-7 Punnen Road Trivandrum - 695 039Kerala, IndiaPhone: +91 471 491 1550Email: cs@muthootfincorp.comWebsite: https://www.muthootfincorp.com/
Muthoot Fincorp NCD February 2021 Registrar
2 nd Floor,Ramakrishna Street, North Usman Road,T. Nagar, Chennai - 600 017Phone: + 91 44 2814 0801 to 803Email: mfinipo@integratedindia.inWebsite: http://www.integratedindia.in/
Muthoot Fincorp NCD FAQs
When is Muthoot Fincorp NCD February 2021 public issue coming?
The Muthoot Fincorp NCD February 2021 issue opens on Feb 18, 2021, and closes on Mar 09, 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 February 2021 timetable?
Muthoot Fincorp Limited NCD IPO dates are as below:Muthoot Fincorp NCD February 2021 Issue Timetable
Bid/Offer Opens On Feb 18, 2021 Bid/Offer Closes On Mar 09, 2021 Record Date Deemed Date of Allotment Where can I get the Muthoot Fincorp NCD February 2021 issue prospectus pdf?
Sorry, Muthoot Fincorp NCD February 2021 DRHP PDF Document is not available at this time.What is Muthoot Fincorp NCD February 2021 price? Tell me the pricing of Muthoot Fincorp Limited NCD issue?
Muthoot Fincorp NCD February 2021 price is set at ₹1000 per NCD.What is the face value of Muthoot Fincorp NCD February 2021?
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 February 2021?
The frequency of payment for Muthoot Fincorp NCD December 2021 is Monthly, Yearly or Cumulative.What is the minimum application size for investment in Muthoot Fincorp NCD February 2021 public issue?
Each application should be for a minimum of 10 NCD's and multiples of 10 NCD thereof.What is Muthoot Fincorp NCD February 2021 closing time?
Muthoot Fincorp NCD February 2021 remain open for subscription on working days from 10:00 a.m. to 5:00 p.m until Mar 09, 2021. The bid may close earlier in case it is fully subscribed.
