Muthoot Finance Limited (MFL) is India’s most significant gold-based loan NBFC in the loan portfolio. It is a Systems Important Non-Deposit-Taking NBFC” (NBFC-ND-SI) located in the southern part of the Indian state, Kerala.
Muthoot Finance has announced the public issue of Non-Convertible Debenture NCDs for base size of 75 crores, with the option to hold oversubscriptions for as high as Rs. 225 crores, aggregating the maximum tranche amount of 300 crores.
The issue will be opened on May 25, 2022 and closed on June 17, 2022 and will have a possibility of closure earlier or an extension.
The funds raised from the issue will be used mostly for the lending operations of the business.
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The Secured NCDs planned for the issue were assessed with AA+ (Stable) by ICRA. The rating for the Secured NCDs from ICRA signifies a “high degree of security regarding the timely service of debts.”
Muthoot Finance NCD Product Note
| Security Name | Muthoot Finance Limited |
|---|---|
| Symbol | MFLXXVII |
| Issue Size | The Company is proposing a Public Issue of Secured Redeemable Non-Convertible Debentures of Face Value of ₹ 1,000 each (“NCDs”), for an amount of ₹ 750 Million (“Base Issue Size”) with an option to retain oversubscription up to ₹ 2,250 Million aggregating up to ₹ 3,000 Million (“Tranche II Issue Limit”) (“Tranche II Issue”) which is within the Shelf Limit of ₹ 30,000 Million (“Shelf Limit”). |
| Issue Price | Rs. 1,000 per NCD |
| Face Value | Rs. 1,000 per NCD |
| Minimum Lot Size | 10 (Ten) NCDs |
| Min Application Size | Rs, 10,000 (10 NCDs) |
| Credit Rating | ICRA AA/stable by ICRA |
| Mode of Allotment & Trading | Dmat only |
Interest Rate Chart
| Series | I | II | III | IV | V | VI | VII |
|---|---|---|---|---|---|---|---|
| Tenor | 36 Month | 60 Month | 36 Month | 60 Month | 84 Month | 36 Month | 60 Month |
| Interest Payment | Monthly | Monthly | Annual | Annual | Annual | NA | NA |
| Coupon Cat I & II | 9.20% | 9.50% | 9.40% | 9.75% | 7.50% | NA | NA |
| Coupon Cat III & IV | 9.59% | 9.57% | 9.80% | 9.77% | 8.00% | NA | NA |
| Yield Cat I & II | 6.75% | 7.00% | 7.00% | 7.25% | 7.50% | 7.00% | 7.25% |
| Yield Cat III & IV | 7.25% | 7.50% | 7.50% | 7.75% | 8.00% | 7.50% | 7.75% |
| Maturity I & II | 1000 | 1000 | 1000 | 1000 | 1000 | 1225.04 | 1419.01 |
| Maturity III & IV | 1000 | 1000 | 1000 | 1000 | 1000 | 1242.30 | 1452.40 |
Subscription Details
| Category | Subscription |
|---|---|
| Category I | 0 |
| Category II | 0.65 |
| Category III | 1.46 |
| Category IV | 4.11 |
| Total | 2.30 |
Base Issue Size 75 Cr. 200.21 Cr Subscribe.
Green Shoe Option 300 Cr.
