Muthoot Fincorp NCD Details February 2021

Muthoot Fincorp NCD Details February 2021

Muthoot Fincorp NCD Details February 2021

Muthoot Fincorp Limited has launched a new non-convertible debentures scheme. The subscription period of the issue started from February 18th, 2021, and will close on March 9th, 2021. The Muthoot Fincorp NCD scheme is secured, redeemable, non-convertible debentures, and/or unsecured subordinated non-convertible debentures (unsecured NCDs).

Basic Details of NCD: 

Issue Opens Feb 18th, 2021 – March 9th, 2021
Security Name Muthoot Fincorp Limited
Security Type Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) and/or Unsecured Subordinated Non-Convertible Debentures (Unsecured NCDs)
Issue Size Rs. 150 crores
Issue Size (Shelf) Rs. 150 crores
Minimum Lot Size 10 NCD
Market Lot 10 NCD
Face Value Rs. 1,000 per NCD
Issue Price Rs. 1,000 per NCD
Listing At BSE
Credit Rating The NCDs have been rated ‘A (Stable)’ by CRISIL Limited
Tenor 27, 38, 60, and 72 months
Series Series I to Series IX
Payment Frequency Monthly, Yearly or Cumulative
Basis of Allotment First Come First Serve Basis

Investment Object:

The net proceeds of the investment to be utilized towards working on capital purpose and general corporate purpose.  

According to the SID, the base size of the issue is Rs. 150 crores and the shelf size remains at Rs. 150 crores. The price of the issue fixed at Rs. 1,000 per NCD bond with a face value of Rs. 1,000 each NCD. 

Further, the Market lot of the issue is 10 NCDs and a minimum lot size of the issue is 10 NCDs.

Besides, the proposed issue to be listed on the Bombay Stock Exchange. 

Further, the scheme will lead by SMC Capitals Limited

Coupon Rates:

 Series  Nature  Tenor (Months)  Frequency of Interest Payment  Coupon Rate (Retail)  Effective Yield (Annually)  Amount on Maturity
 I  Secured  27  Monthly  8.25%  8.57%  Rs. 1,000
 II  38  8.50%  8.84%
 III  60  8.75%  9.10%
 IV  72
 9.00%  9.38%
 V  Annually  9.40%  9.40%
 VI  27  Cumulative  NA  8.58%  Rs. 1,203
 VII  38  8.84% Rs. 1,370
 VIII  60  9.10% Rs. 1,546
 IX  72  9.40% Rs. 1,714

This NCD offer remains rated as “CRISIL/A” stable by CRISIL. The rating indicates that instruments with this rating are deemed to hold a sufficient degree of safety regarding timely servicing of financial obligations and carry the lowest credit risk. 

Disclaimer: Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Before investment, refer to the SID and statement of additional information available free of cost at any of the Investor Service Centres or distributors.

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