Muthoot Finance Ltd is coming out with a public issue of Secured, Redeemable, Non Convertible Debentures (NCDs) of face value of Rs. 1000 each for an amount of Rs. 100 Cr. The Issue is open for subscription on 11 Dec 2020 and closes on 5 Jan 2021.
Product Note
Muthoot Finance Ltd NCD Issue Highlights
| I | II | III | IV | V | VI | |
|---|---|---|---|---|---|---|
| Interest Frequency | Monthly | Monthly | Annual | Annual | NA | NA |
| Period | 38 Month | 60 Month | 38 Month | 60 Month | 38 Month | 60 Month |
| Base Coupon | 6.75% | 7.10% | 7.00% | 7.35% | NA | NA |
| Additional Incentive for Cat III & IV | 0.40% | 0.40% | 0.40% | 0.40% | NA | NA |
| Effective Yield (Cat III & IV) | 7.15% | 7.50% | 7.40% | 7.75% | 7.40% | 7.75% |
| Face Value | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
| Maturity Amt (Cat III & IV) | 1,000 | 1,000 | 1,000 | 1,000 | 1263.41 | 1469.33 |
Specific Term of Issue
| Issuer | Muthoot Finance Ltd |
|---|---|
| Nature of Instrument | Secured Redeemable NCD |
| Mode of Issue | Public Issue |
| Issue Open | 11 Dec 2020 |
| Issue Close | 05 Jan 2021 |
| Depositories | CDSL / NSDL |
| Registrar | Link Intime India Pvt Ltd |
| Issue Size | 100 Cr |
| Issue Price | 1,000 |
| Face Value | 1,000 |
| Min Application Size | 10,000 |
| Credit Rating | "[ICRA] AA [stable] & CRISIL AA/positive |
| Listing | BSE |
| Trading Mode | D'mat form only |
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About Company
The funds raised through this issue will be utilised by the Muthoot Finance for various financing activities including lending and investments, to repay existing liabilities or loans and towards business operations including for capital expenditure, working capital requirement and other general corporate purposes.
Muthoot Finance Ltd is largest gold loan NBFC in India in terms of loan portfolio. According to the ICRA Analytics Ltd Industry report.
Muthoot Finance provide personal loans and business loans secured by gold jewellery, or Gold loans, primarily to individuals who possess gold jewellery but are not able to access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short term liquidity requirement.
Basic of Allotment
- Category I (Institutional) – 5 % of the Issue Size
- Category II (Non-Institutional)- 5 % of the Issue Size
- Category III (HNI) – 30 % of the Issue Size
- Category IV (Retail Individual) – 60 % of the Issue Size
Can NRI Apply in this Issue ?
No. NRI not allow to invest in this issue.
Security
The Secured NCDs shall be secured by way of first pari passu floating charge on current assets, book debts, loans, advances and receivables including gold loan receivables both present and future, by way of hypothecation.
The issuer shall create and maintain security for the Secured NCDs in favour of the Debenture Trustee for the Secured NCD Holders on the book value of the above assets as appearing in the balance sheet from time to time to the extent of 100% of the amount outstanding in respect of Secured NCDs including interest thereon at any time.
At the request of the Issuer, the Debenture Trustee may release/ exclude a part of the assets mentioned above from the security to be created for the Secured NCDs, subject to the Issuer maintaining the security cover as mentioned above and subject to such other terms and conditions as may be stipulated by the Debenture Trustee.
The Issuer shall carry out subsequent valuation of the assets mentioned above, at the request of the Debenture Trustee, at the Issuer’s cost