26-Oct-2023
2 mins read
Muthoot Fincorp Limited, a notable non-banking financial company (NBFC) in India with a strong foothold in the gold loan industry, is gearing up to launch its Secured Non-Convertible Debentures (NCDs). The subscription window for these NCDs will open on September 1, 2023, and conclude on September 14. These NCDs present an opportunity for investors, offering competitive interest rates of up to 9.44%. The NCDs are diversified into 10 distinct series, each spanning different periods from 24 to 96 months.
Muthoot Fincorp Limited Company Profile
Muthoot Fincorp Limited Established in 1997, Muthoot Fincorp Limited operates as a non-deposit-taking Non-Banking Financial Company (NBFC). Its main focus lies in providing secured personal and business loans utilising gold ornaments and jewellery as collateral. The company’s gold loan offering serves both individual and business needs, catering to short-term financial liquidity demands.
As of June 30, 2023, the company’s gold loan portfolio consisted of around 31 lakh loan accounts.
By June 30, 2023, the company had a presence in 24 states, including the union territory of Andaman and Nicobar Islands and the national capital territory of Delhi, operating through a network of 3,619 branches. The workforce included 19,008 employees, which also featured 110 contracted specialists contributing to its operations.
The company provides a range of Gold Loan products, including:
- 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
- 24×7 Express Gold Loan
Apart from its Gold loan business, Muthoot Fincorp extends its services to include foreign exchange conversion and money transfer services as sub-agents for various registered money transfer agencies. Additionally, the company is active in the following sectors:
Renewable Energy Generation: Muthoot Fincorp participates in the generation and sale of wind energy. This is accomplished through its wind farms situated in Tamil Nadu.
Real Estate Ventures: The company is involved in real estate activities, collaborating with joint venture developers to utilise its owned land parcels for real estate development projects.
Financial Performance of Muthoot Fincorp Limited (In Rs Crore)
| Period Ended | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 |
| Assets | 26,284.54 | 28,422.34 | 32,134.61 |
| Revenue | 4,101.19 | 4,355.13 | 5,151.33 |
| Profit After Tax | 397.28 | 412.55 | 646.42 |
| Net Worth | 3,034.70 | 3,731.16 | 4,257.18 |
Important details of Muthoot Fincorp Limited
| Issue Open | Sep 1, 2023 – Sep 14, 2023, |
| Security Name | Muthoot Fincorp Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 400.00 Crores |
| Issue Size (Shelf) | Rs 1,100.00 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 |
| 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 |
Muthoot Fincorp Limited NCD Allocation Ratio
| Category | NCD’s Allocated |
| Institutional | 5% |
| Non-Institutional | 35% |
| Retail | 60% |
| Category 4 | 0% |
Muthoot Fincorp Limited NCD Rating
The company has received CRISIL AA-/Stable from CRISIL.
Muthoot Fincorp Limited Company Promoters
Thomas John Muthoot, Thomas George Muthoot, and Thomas Muthoot are the company promoters.
The Objective of Muthoot Fincorp Limited NCD August 2023
The funds raised through the issue will be allocated as follows:
Working Capital: 75% of the raised and allotted amount will be utilised to support working capital requirements.
General Corporate Purposes: The remaining 25% of the raised and allotted amount will be used for general corporate purposes.
Lead Managers of Muthoot Fincorp Limited NCD August 2023
SMC Capitals Limited is the lead manager of Muthoot Fincorp Limited NCD August 2023.
How to Apply for Muthoot Fincorp Limited NCD August 2023?
Wait for the public issue to open for subscription, then click on this link to apply for Muthoot Fincorp Limited NCD with Bigul: https://ipo.bonanzaonline.com/.
Registrar of Muthoot Fincorp Limited NCD August 2023
Integrated Registry Management Services Private Limited is the registrar of Muthoot Fincorp Limited NCD August 2023
FAQ-
- What is the subscription window for Muthoot Fincorp NCDs?
The subscription window for Muthoot Fincorp NCDs is from September 1, 2023, to September 14, 2023.
- What is the interest rate offered by these NCDs?
These NCDs offer competitive interest rates of up to 9.44%.
- Can you explain the series and tenor options for these NCDs?
The NCDs are diversified into 10 distinct series, each spanning different periods from 24 to 96 months. This allows investors to choose a tenor that aligns with their investment goals.
- How can I apply for Muthoot Fincorp NCDs?
To apply for Muthoot Fincorp NCDs, you can wait for the public issue to open for subscription and then visit the provided link: https://ipo.bonanzaonline.com/.
- What is the minimum investment required?
The minimum lot size for these NCDs is 10 NCDs.
- How will the allotment be done if the demand exceeds the available NCDs?
The allotment will be done on a first-come, first-served basis.
- What is the credit rating of these NCDs?
The NCDs have been assigned a credit rating of CRISIL AA-/Stable by CRISIL, indicating a high degree of safety for the timely servicing of financial obligations.
- Who are the promoters of Muthoot Fincorp Limited?
The company promoters are Thomas John Muthoot, Thomas George Muthoot, and Thomas Muthoot.
- How will the funds raised from the NCD issue be used?
The funds raised will be allocated with 75% for working capital requirements and the remaining 25% for general corporate purposes.
- What are the allocation ratios for different investor categories?
Institutional investors will be allocated 5% of the NCDs, non-institutional investors will receive 35%, and retail investors will be allocated 60%.
- Who is the lead manager for Muthoot Fincorp NCD August 2023?
SMC Capitals Limited is the lead manager for this NCD issue.