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:
- Facilitating onward lending, financing, and repayment or prepayment of principal and interest on current borrowings.
- 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: https://ncd.bonanzaonline.com/.
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: https://kosmic.kfintech.com/ipostatus/
FAQs
- 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.
- 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.
- 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.
- How long is the NCD open for subscription?
The NCD subscription starts on December 4, 2023, and closes on December 15, 2023.
- How has the NCD been rated?
The NCD has received a “IND BBB/Stable” rating by India Ratings & Research Private Limited.
- Who are the promoters behind the company?
The company is promoted by Mathew Mathaininan.
- 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.
- Who are the lead managers for this NCD issue?
The NCD is being led by Vivro Financial Services Private Limited.
- 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.
- 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.
- 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.
- Who is overseeing the allotment process?
The allocation of NCDs is being overseen by Mitcon Credentia Trusteeship Services Limited.
- 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.
- What happens in the case of oversubscription?
In situations of oversubscription, Muthoot Mercentile will allocate the debentures to applicants on a proportional basis.