Muthoot Mercentile Limited NCD

  • 25-Nov-2023
  • 2 mins read

Muthoot Mercentile Limited has announced a public issue of NCDs to raise capital from the debt market. The NCD subscription starts on December 4, 2023, and closes on December 15, 2023. It will have a base issue size of Rs 100 crore.

About Muthoot Mercentile Limited 

Established in 1939, Muthoot Mercantile Limited has established itself as a leading non-banking financial institution specializing in a wide range of financial services. Its core focus lies in providing loans backed by diverse assets such as gold, investments, health insurance, forex facilities, and money transfer solutions.

Geographical Reach: With an extensive network, the company has branches spanning significant regions like Kerala, Tamil Nadu, Maharashtra, Odisha, Delhi, Uttar Pradesh, Madhya Pradesh, Haryana, and Punjab. Additionally, it aims for further expansion to tap into new markets.

Operational Strategy: Initially centred on lending, specifically small-scale loans secured against households and gold jewellery, Muthoot Mercantile Limited has undergone significant transformation over its 84-year history. The company has continuously adapted and broadened its services to diversify its offerings.

Corporate Headquarters: The Company’s main headquarters are located in Thiruvananthapuram, strategically positioned in Kerala’s southern region. This central hub serves as the epicentre for operational activities and decision-making processes.

Financial Performance of Muthoot Mercentile Limited 

Period Ended 31-Aug-23 31-Mar-23 31-Mar-22 31-Mar-21
Assets 631.62 606.51 316.24 420.35
Revenue 46.45 94.67 67.02 49.39
Profit After Tax 8.93 18.19 17.02 14.02
Reserves and Surplus 115.08 106.14 87.95 70.93

Muthoot Mercentile Limited NCD Details

Issue Open December 4, 2023 – December 15, 2023
Security Name Muthoot Mercentile Limited
Security Type Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base) Rs 100.00 Crores
Issue Size (Shelf) Rs 200.00 Crores
Issue Price Rs 1000 per NCD
Face Value Rs 1000 each NCD
Minimum Lot size Yet to be announced
Market Lot 1 NCD
Listing At BSE
Credit Rating IND BBB/Stable by India Ratings & Research Private Limited
Tenor 367 days, 18, 24, 36, 60, 75 months
Series Series I to XI
Payment Frequency Monthly and Cumulative
Basis of Allotment First Come, First Serve Basis
Debenture Trustee/s Mitcon Credentia Trusteeship Services Limited

NCD Allocation Ratio of Muthoot Mercentile Limited NCD

Category NCD’s Allocated
Institutional 10%
Non-Institutional 40%
Retail 50%
Category 4 0%

Muthoot Mercentile Limited NCD Coupon Rates

Series Frequency of Interest Payment Nature Tenor Coupon (% per Annum) Effective Yield (% per Annum) Amount on Maturity (In Rs.)
1 Monthly Secured 367 Days 9.50% 9.92% Rs 1,000.00
2 Cumulative Secured 367 Days NA 9.75% Rs 1,097.50
3 Monthly Secured 18 Months 9.65% 10.09% Rs 1,000.00
4 Cumulative Secured 18 Months NA 9.77% Rs 1,150.00
5 Monthly Secured 24 Months 9.75% 10.20% Rs 1,000.00
6 Cumulative Secured 24 Months NA 9.77% Rs 1,205.00
7 Monthly Secured 36 Months 10.25% 10.75% Rs 1,000.00
8 Cumulative Secured 36 Months NA 10.18% Rs 1,337.50
9 Monthly Secured 60 Months 10.50% 11.02% Rs 1,000.00
10 Cumulative Secured 60 Months NA 9.61% Rs 1,582.50
11 Cumulative Secured 75 Months NA 11.73% Rs 2,000.00

NCD Rating of Muthoot Mercentile Limited NCD

The NCDs proposed to be issued under this issue have been rated “IND BBB/Stable”, by India Ratings & Research Private Limited.

Company Promoters of Muthoot Mercentile Limited 

The promoter of the company is Mathew Mathaininan.

The Objective of the Muthoot Mercentile Limited NCD

The company intends to utilize the raised funds from the Issue, deducting the Issue-related expenses, for the following purposes:

  1. Facilitating onward lending, financing, and repayment or prepayment of principal and interest on current borrowings.
  2. Allocations towards general corporate endeavours.

Muthoot Mercentile Limited NCD Lead Manager(s)

The lead manager of the NCD is Vivro Financial Services Private Limited.

How to Apply for Muthoot Mercentile Limited NCD

Wait for the NCD to open for subscription, and then click on this link to apply for the Muthoot Mercentile Limited NCD with Bigul:

How to Check the Allotment Status of Muthoot Mercentile Limited NCD

The registrar for Muthoot Mercentile Limited NCD is Kfin Technologies Limited. To check your allotment status, please click on this link:


  1. What is Muthoot Mercentile Limited NCD? 

The NCD (Non-Convertible Debentures) is a debt instrument offered by Muthoot Mercentile Limited to the public for subscription. It is a secured, redeemable debenture that carries a fixed interest rate.

  1. What is the primary objective of this NCD issue? 

The funds raised from the issue, after deducting related expenses, will be used for lending, repaying existing borrowings, and general corporate purposes.

  1. What is the issue size and price of the NCD? 

The base issue size is Rs 100 crore, with a green shoe option potentially taking the total to Rs 200 crore. Each NCD is priced at Rs 1,000.

  1. How long is the NCD open for subscription? 

The NCD subscription starts on December 4, 2023, and closes on December 15, 2023.

  1. How has the NCD been rated? 

The NCD has received a “IND BBB/Stable” rating by India Ratings & Research Private Limited.

  1. Who are the promoters behind the company? 

The company is promoted by Mathew Mathaininan.

  1. Where will the NCD be listed for trading? 

Post-issue, the NCDs will be available for trading on the Bombay Stock Exchange (BSE) in a dematerialised format.

  1. Who are the lead managers for this NCD issue? 

The NCD is being led by Vivro Financial Services Private Limited.

  1. How can I apply for the Muthoot Mercentile Limited NCD? 

Once the NCD opens for subscription, you can apply through this link: Muthoot Mercentile Limited NCD with Bigul.

  1. How do I check my allotment status? 

The registrar for this NCD is Kfin Technologies Limited. You can check your allotment status by visiting this link.

  1. How many series of NCDs are available, and what are their respective tenures? 

There are 11 series of NCDs available with varying tenures of 367 days, 18, 24, 36, 60, 75 months.

  1. Who is overseeing the allotment process? 

The allocation of NCDs is being overseen by Mitcon Credentia Trusteeship Services Limited.

  1. What are the payout options for these NCDs?

Investors have the flexibility to choose between monthly and cumulative interest payout options, depending on the series.

  1. What happens in the case of oversubscription? 

In situations of oversubscription, Muthoot Mercentile will allocate the debentures to applicants on a proportional basis.



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