Muthoot Finance Ltd. NCD issue is a public issue of secured, redeemable, non-convertible debenture , issued under a Shelf Prospectus of ₹900.00 Cr with a base issue size of ₹100.00 Cr and an option to retain oversubscription up to ₹[.] Cr, aggregating to a tranch issue size of ₹[.] Cr. The NCDs are offered at a face value ₹1000 each and an issue price of ₹1000 per NCD.
Muthoot Finance Ltd. NCD issue opens on Jan 8, 2024 and closes on Jan 19, 2024. NCD are proposed to be listed on BSE.
The minimum lot size is 10 NCDs, requiring a minimum investment of ₹ 10,000 , while the market lot for trading is 1 NCD.
The issue offers interest rates ranging from 8.25% per annum to 8.50% per annum, depending on the series and tenure selected.
The NCD has been rated: .
A.K.Capital Services Ltd. is the Lead Manager to the issue, IDBI Trusteeship Services Ltd. is the Debenture Trustee, and MUFG Intime India Pvt.Ltd. is the Registrar to the Issue.
Investors are advised to refer to the NCD Offer Document and Shelf Prospectus for detailed information on risk factors, financials, and the terms of the issue.
Open Date
Mon, Jan 8, 2024
Close Date
Fri, Jan 19, 2024
Issue Size (Overall)
[.]
Muthoot Finance Limited NCD Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 |
|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Monthly | Annual | Annual | Annual | NA | NA |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 36 Months | 60 Months | 24 Months | 36 Months | 60 Months | 36 Months | 60 Months |
| Coupon (% per Annum) | 8.25% | 8.25% | 8.25% | 8.50% | 8.50% | NA | NA |
| Effective Yield (% per Annum) | 8.75% | 8.75% | 8.75% | 9.00% | 9.00% | 9.00% | 9.00% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,295.03 | Rs 1,538.62 |
Mr. George Thomas Muthoot, Mr. George Jacob Muthoot, and Mr. George Alexander Muthoot are the promoters of the company.
Muthoot Finance Limited's revenue decreased by -5% and profit after tax (PAT) dropped by -12.16% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 72,619.81 | 70,554.69 | 63,464.92 |
| Revenue | 10,543.75 | 11,098.39 | 10,574.36 |
| Profit After Tax | 3,473.53 | 3,954.30 | 3,722.18 |
| Net Worth | 2,106.20 | 18,344.57 | 15,238.89 |
| Amount in ₹ Crore | |||
| Category | Allocated (%) | Shares Reserved |
|---|---|---|
| Institutional | 5.00% | 50,000 |
| Non-Institutional | 30.00% | 3,00,000 |
| HNI | 30.00% | 3,00,000 |
| Retail | 35.00% | 3,50,000 |
| Total | 100.00% | 10,00,000 |
Incorporated in 1997, Muthoot Finance Limited is a Kerala-based gold loan NBFC company with a legacy of 800 years of the family business.
The company offers Gold loans, Housing Finance (Home Loans), Personal loans, Insurance, Gold Coins, Money Transfer Services, Foreign Exchange, Mutual Funds, Micro Finance and Vehicle loans.
Muthoot Finance has over 4,745 branches across 22 states, the national capital territory of Delhi, and six union territories in India, with 28,097 employees. As of September 30, 2023, the company's Gold Loan portfolio comprised approximately 8.52 million loan accounts.
The company's clientele includes small businessmen, vendors, traders, farmers, and salaried individuals. As of March 31, 2023, the company had ₹296,243.02 million as borrowings from banks and financial institutions.
The Net Proceeds raised through the Tranche III Issue will be utilised for the following activities in the ratio provided below:
[Dilip Davda] This is leading Gold Finance NBFC. The company posted declining trends for its top and bottom lines for the last two fiscals. Considering its AA+/Stable ratings by ICRA, investors looking for a steady income may park moderate funds for medium to long-term. Read detail review...
The Muthoot Finance NCD Tranche III January 2024 was subscribed 5.29 times on Jan 19, 2024 17:00. The NCD subscribed 7.25 times in Retail, 2.98 times in HNI, 6.19 times in Non-Institutional, and 0.00 times in Institutional category.
Muthoot Finance Ltd.
2 nd Floor, Muthoot Chambers,
Opposite Saritha Theatre Complex,
Banerji Road, Kochi - 682 018
Baner, Maharashtra, 682018
NSE and BSE offer NSEgoBid and BSEDirect apps/websites through which retail investors can apply for NCDs up to Rs 5 lakhs. Not all brokers and banks provide the facility to apply for NCD online.
To apply for an NCD online, the investor should fill in the NCD bid details online and provide the details of the DP and bank accounts (ASBA/UPI) as requested. In the case of a UPI application, the investor needs to approve the UPI mandate to complete the application process.
Steps to invest in NCD IPO through GoldenPi
Retail investors can apply for an IPO online if the investment amount is less than or up to 10 lakhs.
Steps to apply for NCD IPO with Indiabonds:
You can buy or invest in NCD IPOs through the following intermediaries:
The investor can apply for the NCD IPO online through NCD intermediaries such as a registered stockbroker, provided the broker offers an online application for the NCD IPO. Not many brokers allow you to invest in an NCD IPO online. Currently, very few brokers, such as Nuvama Wealth, Angel One, and SBI Securities, offer the facility to apply for NCD IPOs electronically. You should check with your broker or intermediary to see if the online application facility for the NCD IPO is available through them.
Refer to the detailed guidelines on NSEgoBID and BSEDirect for information on the registration process and how to apply for NCDs through the exchange.
Important links :
Read more about NCD Application Process.
The minimum amount required for NCD investment is Rs. 10,000.
Generally, the minimum lot size of NCD is 10, and the face value is 1,000.
NCD allotment can be checked on the BSE website or with the Registrar once the allotment has been made.
Steps to check the NCD allotment status at the BSE:
Alternatively, the applicant can also check the allotment status on the respective website of the Registrar for the issue. The applicant will need their PAN details or the applicant's Aadhaar number to check the status.
Generally, all applicants receive full allotment due to the retention of the oversubscription option.
Read more information on NCD Subscription and NCD Allotment Process.
No, you cannot withdraw or redeem Muthoot Finance Ltd. NCDs before maturity directly from the company. However, there are a couple of options available if you want to exit early:
If the NCDs are listed on stock exchanges (like BSE/NSE), you can:
Only possible if a "call option" exists.
Read more about NCD Subscription and Allotment Process
Bid Cancellation and Withdrawal Policy for NCD Applicants
Note:
The specific process and conditions for post-closure cancellation vary by issuer. Applicants should refer to the Offer Document for issuer-specific guidelines.
