Muthoot Finance Limited NCD Details

Muthoot Finance Limited NCD Details

Muthoot Finance Limited NCD Details

Muthoot Finance Limited, a Kerala-based gold loan NBFC Firm. It launches a new NCD scheme. The scheme opens for subscription on April 8th, 2021. It is a secured, redeemable, Non-Convertible debentures Secured NCD scheme. Moreover, the scheme will close on April 29th, 2021.

Basic Details of NCD:

 Issue Open April 8th, 2021 – April 29th, 2021
 Security Name Muthoot Finance Limited
 Type Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
 Base Issue Size Rs. 100 crores
 Issue Size (Shelf) Rs. 1,600 crores
 Issue Price Rs. 1,000 per NCD
 Face Value Rs. 1,000 each NCD
 Minimum Lot Size 10 NCD
 Market Lot 1 NCD
 Listing At BSE
 Credit Rating The NCDs have been rated ‘[ICRA] AA+/” Stable” by ICRA and “CRISIL AA+/Stable” by CRISIL
 Tenor 26, 38, 60, 120,
 Series I to VIII
 Payment Frequency Monthly, Annually
 Basis of Allotment First Come First Serve Basis

A public issue by Muthoot Finance of the face value of Rs. 1,000 each NCD for an amount of Rs. 1,000 million with an option of retaining oversubscription up to Rs. 16,000 million aggregating up to 1,70,00,000 NCDs amounting to Rs. 17,000 million.

Further, investors need to invest a minimum of 10 bonds means to invest for a minimum of Rs. 10,000 in multiples of 1 bond. Interest payables available monthly and yearly. Individual coupon rates ranged between 6.60% to 8%.

Investment Objective:

As per the NCD prospectus, the net proceeds of the Tranche III issue will be utilized for the purpose of lending a minimum of 75% of the amount raised and allotted in the issue. For general corporate purposes- shall not exceed 25% of the amount raised and allotted in the issue.

Coupon Rates:

 Series Tenor  Frequency of Interest Payment  Coupon Rate Redemption Amount Rs.
I 38 Months Monthly 6.85%  1,000
II 60 Months 7.35%
III 26 Months Annually 6.60%
IV 38 Months 7.10%
V 60 Months 7.60%
VI 120 Months 8%
VII 38 Months NA NA 1,252.26
VIII 60 Months 1,459.15

The NCDs proposed to be issued under this issue have been rated as ‘[ICRA] AA+/” Stable” by ICRA and “CRISIL AA+/Stable” by CRISIL.

As of the source, the NCD has reserved for QIB, NII, HNI, and RIIs. It reserved for QIBs and NIIs up to 1,00,000 NCDs each. Further, 3,00,000 bonds reserved for HNIs and 5,00,000 bonds for RII.

Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Please read the offer document carefully and consult your investment adviser before investing.

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