Muthoottu Mini NCD January 2021 – Coupon Rates, Credit Rating

Muthoottu Mini NCD January 2021 - Coupon Rates, Credit Rating

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
Listing At BSE
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
Payment Monthly, Cumulative,
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.

Coupon Rates:

Series  Category  Tenor  Frequency of Interest Payment  Coupon Rate  Effective Yield (%) per Annum Redemption Amount
 I Secured 480 days  Monthly  9.25%  9.65%  1,000
 II  24 M Monthly 9.50% 9.92% 1,000
III  24 Months Cumulative NA 9.54% 1,200
IV 42 M Monthly 10.00% 10.47% 1,000
V 66 M Cumulative NA 10.71% 1,750
VI Unsecured  61 Months Monthly 10.25% 10.75% 1,000
VII 84 M Cumulative NA 10.41% 2,000

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.

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