04-Jan-2024
2 mins read
Muthoot Fincorp Limited is set to raise Rs 75 crore through an issuance priced at Rs 1000 per Non-Convertible Debenture (NCD). The minimum subscription requirement for investors is set at 10 NCDs per lot. The issue has been assigned a CRISIL AA-/Stable rating by CRISIL Ratings Limited.
Muthoot Fincorp Product Portfolio
Founded in 1997, Muthoot Fincorp Limited operates as a non-deposit-accepting NBFC, primarily providing secured personal and business loans against gold ornaments and jewellery. These gold loan offerings cater to individuals’ short-term financial needs for personal and business purposes.
As of September 30, 2023, the company managed a gold loan portfolio with approximately 31.68 lakh loan accounts. Muthoot Fincorp Limited has established a robust presence with 3,619 branches spread across 24 states, including the Union Territory of Andaman and Nicobar Islands and the National Capital Territory of Delhi. The company’s workforce includes 20,507 employees and 91 contracted specialists.
The range of gold loan products offered by Muthoot Fincorp includes but is not limited to, Muthoot Blue Guide Gold Loans, Muthoot Blue Bright Gold Loan, Muthoot Blue Power Gold Loan, Muthoot Blue Bigg Gold Loan, and Muthoot Blue Smart Gold Loan 24×7 Express Gold Loan. Beyond gold loans, Muthoot Fincorp extends services in foreign exchange and money transfers, acting as a sub-agent for various registered money transfer agents.
Additionally, the company’s business activities extend to the generation and sale of wind energy via its wind farms located in Tamil Nadu, and it is also involved in real estate through joint venture developments of its properties.
Financial Performance of Muthoot Fincorp Limited (In Rs Crore)
Between the financial year ending March 31, 2023, and the previous year ending March 31, 2022, Muthoot Fincorp Limited experienced a revenue growth of 18.28% and an increase of 56.69% in its profit after tax (PAT).
| Period Ended | 31-Mar-23 | 31-Mar-22 |
| Assets | 32,134.61 | 28,422.47 |
| Revenue | 5,151.33 | 4,355.13 |
| Profit After Tax | 646.42 | 412.55 |
| Net Worth | 4,257.18 | 3,731.16 |
| Reserves and Surplus | 3,481.27 | 2,958.70 |
Important Dates for Muthoot Fincorp NCD
| Issue Open | January 12, 2024 – January 25, 2024 |
| Security Name | Muthoot Fincorp Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 75 Crores |
| Issue Size (Shelf) | Rs 1,100 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 | CRISIL AA- /Stable by CRISIL Ratings Limited |
| Tenor | 24, 36, 60 and 96 Months |
| Series | Series I to X |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Vardhman Trusteeship Private Limited |
Allocation Ratio of Muthoot Fincorp NCD
| Category | NCD’s Allocated |
| Institutional | 5% |
| Non-Institutional | 35% |
| Retail | 60% |
| Category 4 | 0% |
Coupon Rates for Muthoot Fincorp Limited NCD
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 |
| Frequency of Interest Payment | Monthly | Monthly | Monthly | Annual | Annual | Annual | Cumulative | Cumulative | Cumulative | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 36 Months | 60 Months | 24 Months | 36 Months | 60 Months | 24 Months | 36 Months | 60 Months | 96 Months |
| Coupon (% per Annum) | 8.90% | 9.15% | 9.35% | 9.25% | 9.50% | 9.75% | NA | NA | NA | NA |
| Effective Yield (% per Annum) | 9.26% | 9.53% | 9.75% | 9.25% | 9.50% | 9.75% | 9.25% | 9.50% | 9.75% | 9.05% |
| Amount on Maturity (In Rs) | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,194 | Rs 1,313 | Rs 1,592 | Rs 2,001 |
NCD Rating of Muthoot Fincorp NCD
For the Non-Convertible Debentures (NCDs) set to be issued in this offering, the company has been assigned a CRISIL AA-/Stable rating by CRISIL Ratings Limited.
Company Promoters of Muthoot Fincorp NCD
Thomas John Muthoot, Thomas George Muthoot, and Thomas Muthoot are the company promoters.
The Objective of the Muthoot Fincorp NCD
The company plans to allocate the funds raised from this issue for specific purposes. Around 75% of the total amount raised and allotted in this Tranche II Issue is earmarked for working capital needs. The remaining 25% is intended for general corporate purposes. This strategic allocation aims to efficiently support the company’s operational and corporate requirements.
Lead Managers for Muthoot Fincorp NCD
The lead manager(s) for Muthoot Fincorp NCD is Smc Capitals Limited.
How to Apply for Muthoot Fincorp NCD
Wait for the NCD to open for subscription, then click on this link to apply for the Muthoot Fincorp Limited NCD with Bigul: https://ncd.bonanzaonline.com/.
How to Check the Allotment Status of 360 ONE Prime NCD
The registrar for Muthoot Fincorp Limited NCD is Link Integrated Registry Management Services Private Limited. To check your allotment status, please click on this link https://www.integratedindia.in/corporate-container.aspx?cpi.
FAQs
- What are the key details of the Muthoot Fincorp NCD issue?
Answers: Here’s the details:
- Opening Date: January 12, 2024
- Closing Date: January 25, 2024
- Issue Type: Secured, Redeemable, Non-Convertible Debentures
- Issue Size: Base of Rs 75 Crores with a Shelf option of Rs 1,100 Crores
- Price: Rs 1,000 per NCD
- Face Value: Rs 1,000 each NCD
- Minimum Lot Size: 10 NCDs
- Listing: BSE
- Credit Ratings: CRISIL AA- /Stable by CRISIL Ratings Limited
- What is the financial performance of Muthoot Fincorp Limited?
For the fiscal year ending March 31, 2023, Muthoot Fincorp Limited reported an increase in revenue by 18.28% and a rise in profit after tax (PAT) by 56.69% compared to the previous year.
- Who are the promoters of Muthoot Fincorp Limited?
The promoters of the company are Thomas John Muthoot, Thomas George Muthoot, and Thomas Muthoot.
- What is the purpose of the Muthoot Fincorp NCD?
The proceeds from the NCD issuance are intended to be allocated with 75% for working capital needs and 25% for general corporate purposes.
- How can investors apply for the Muthoot Fincorp NCD and check the allotment status?
Investors can apply for the NCD when it opens for subscription through the link https://ncd.bonanzaonline.com/. The allotment status can be checked at Link Integrated Registry Management Services Private Limited’s website: https://www.integratedindia.in/corporate-container.aspx?cpi.
- What are the coupon rates and terms for the Muthoot Fincorp Limited NCD?
The NCDs offer various series with tenors ranging from 24 to 96 months. Coupon rates vary from 8.90% to 9.75% per annum, depending on the series and payment frequency (monthly, annual, and cumulative). The effective yield per annum varies accordingly, ranging from 9.05% to 9.75%.