Muthoottu Mini NCD January 2021:
Muthoottu Mini Financier Limited is a non-banking finance company. It was incorporated in 1998. The firm involved in the gold loan business lending money against the pledge of household gold jewelry. It has launched a new non-convertible debentures scheme on 13th January 2021. The Muthoottu Mini NCD scheme will close for subscription on 9th February 2021.
Features of New NCD:
|Issue Open||Jan 13th, 2021 – Feb 9th, 2021|
|Security Name||Muthoottu Mini Financiers Limited|
|Security Type||Secured, Redeemable, Non-Convertible Debentures and/or Unsecured Subordinated Non-Convertible Debentures|
|Issue Size (Base)||Rs. 122.00 crores|
|Shelf (issue size)||Rs. 122.00 crores|
|Issue Price||Rs. 1,000 per NCD|
|Face Value||Rs. 1,000 each NCD|
|Minimum Lot Size||10 NCD|
|Market Lot||1 NCD|
|Credit Rating||‘IND BBB’: outlook stable for secured and unsecured Redeemable non-convertible debentures|
|Tenor||480 days, 24, 42, 66, 61, and 84 months|
|Series||I to VII|
|Basis of Allotment||First Come First Serve Basis|
The public issue of NCDs by Muthoottu Mini aggregating up to Rs. 12,500 lakhs, with an option, retain over-subscription up to Rs. 12,500 lakhs, aggregating up to Rs. 25,000 lakhs.
The Objective of the Scheme:
As of the red herring prospectus document, the main objective of the scheme is for the purpose of onward lending, financing, and for repayments or prepayment of principal and interest on borrowings of the company. The second one is for general corporate purposes.
Further, investors need to invest a minimum of 10 bonds. Means invest for a minimum of Rs. 10,000 in multiples of 1 bond. Interest payables available monthly, yearly, and cumulative. Individual coupon rates ranged between 9.25% to 10.75%.
According to the scheme information document, the NCD‘s restrained nearly 1,25,000 bonds to qualified institutional investors and 5,00,000 to non-institutional investors. Moreover, it reserved 6,25,000 bonds to the High-Networth Individual investors.
|Series||Category||Tenor||Frequency of Interest Payment||Coupon Rate||Effective Yield (%) per Annum||Redemption Amount|
As per the reports, the NCD will manage by Vivro Financial Services Private Limited. Besides, the scheme has in view of poor rating and average financial concert so far. However, the investors who should put their money in this scheme may contemplate moderate investment as interest are profitable away from easing interest rate structure.
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.