Muthoot Finance Limited NCD Details
Muthoot Finance Limited, a Kerala based gold loan NBFC Firm. It launches a new NCD scheme. The scheme opens for subscription on April 8, 2021. It is a secured, redeemable, Non-Convertible debentures Secured NCD scheme. Moreover, the scheme will close on April 29, 2021.
Basic Details of NCD:
| Issue Open | April 8, 2021 – April 29, 2021 |
| Security Name | Muthoot Finance Limited |
| Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Base Issue Size | Rs. 100 crores |
| Issue Size (Shelf) | Rs. 1,600 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 | The NCDs have been rated ‘[ ICRA] AA+/” Stable” by ICRA and “CRISIL AA+/Stable” by CRISIL |
| Tenor | 26, 38, 60, 120, |
| Series | I to VIII |
| Payment Frequency | Monthly, Annually |
| Basis of Allotment | First Come First Serve Basis |
A public issue by Muthoot Finance of the face value of Rs. 1,000 each NCD for an amount of Rs. 1,000 million with an option of retaining oversubscription up to Rs. 16,000 million aggregating up to 1,70,00,000 NCDs amounting to Rs. 17,000 million.
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 and yearly. Individual coupon rates ranged between 6.60% to 8%.
Investment Objective:
As per the NCD prospectus, the net proceeds of the Tranche III issue will be utilised for the purpose of lending- a minimum of 75% of the amount raised and allotted in the issue. For general corporate purposes- shall not exceed 25% of the amount raised and allotted in the issue.
Coupon Rates:
| Series | Tenor | Frequency of Interest Payment | Coupon Rate | Redemption Amount Rs. |
| I | 38 Months | Monthly | 6.85% | 1,000 |
| II | 60 Months | 7.35% | ||
| III | 26 Months | Annually | 6.60% | |
| IV | 38 Months | 7.10% | ||
| V | 60 Months | 7.60% | ||
| VI | 120 Months | 8% | ||
| VII | 38 Months | NA | NA | 1,252.26 |
| VIII | 60 Months | 1,459.15 |
The NCDs proposed to be issued under this issue have been rated as ‘[ICRA] AA+/” Stable” by ICRA and “CRISIL AA+/Stable” by CRISIL.
As of the source, the NCD has reserved for QIB, NII, HNI, and RIIs. It reserved for QIBs and NIIs up to 1,00,000 NCDs each. Further, 3,00,000 bonds reserved for HNIs and 5,00,000 bonds for RII.
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.