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 27 Oct 2020 and closes on 20 Nov 2020.
Product Note
Muthoot Finance Ltd NCD Issue Highlights
| Issuer | Muthoot Finance Ltd |
|---|---|
| Nature of Instrument | Secured Redeemable NCD |
| Mode of Issue | Public Issue |
| Issue Open | 27 Oct 2020 |
| Issue Close | 20 Oct 2020 |
| 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 |
Specific Term of Issue
| 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 | 7.15% | 7.50% | 7.40% | 7.75% | NA | NA |
| Additional Incentive for Cat III & IV | 0.25% | 0.25% | 0.25% | 0.25% | NA | NA |
| Effective Yield (Cat III & IV) | 7.40% | 7.75% | 7.65% | 8.00% | 7.65% | 8.00% |
| 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 |
About Company
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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.