Muthoot Fincorp NCD April 2021

Muthoot Fincorp NCD April 2021 Review

April 7, 2021, 8:32 a.m.

NCD Investment

The Company, Muthoot Fincorp Limited (the “Company” or the “Issuer”) was incorporated in the Republic of India under the Companies Act, 1956, as amended as a public limited company and registered as a Non-Banking Financial Company (“NBFC”) within the meaning of the Reserve Bank of India Act, 1934, as amended (the “RBI Act”). The promoters are Thomas John Muthoot, Thomas George Muthoot and Thomas Muthoot.

Muthoot Fincorp with its subsidiaries deals in the business of Gold Loans, Small Business Loans, Affordable Housing Loans, Two wheeler Loans, Used-car Loans, Domestic Money Transfer, International Remittance, Foreign Exchange, Insurance Products & Services, Wealth Management Services etc. For the half year ended September 30, 2020, Fiscal 2020 and Fiscal 2019 revenues from the Gold loan business constituted 93.36%, 87.84 % and 82.86% of the total income on a standalone basis as per Ind AS, respectively. For half year ended September 30, 2020, Fiscal 2020 and Fiscal 2019 the gold loan portfolio of the Company earned an interest of ₹ 1,32,275.82 lakhs, ₹ 2,39,327.28 lakhs and ₹2,05,896.50 lakhs on a standalone basis as per Ind AS, respectively. For the Fiscals 2018 revenues from the Gold loan business constituted 85.63%, of the total income on a standalone basis as per IGAAP. For the Fiscals 2018 the gold loan portfolio of the Company earned an interest of ₹1,87,258.25 lakhs, as per IGAAP.

Credit Rating of Muthoot Fincorp

For this issue, The NCDs have been rated “A+ (Stable)” by CRISIL Limited

Issue Purpose

At least 75% of Issue will be utilized for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of our Company and the rest will be used for General Corporate Purpose

Issue Size

Base Issue of Rs. 20,000 Lakhs with an option to retain oversubscription upto Rs. 20,000 Lakhs, aggregating to Rs. 40,000 Lakhs.

Issue Structure

Options	Tenure	Frequency of Int. Payment	Coupon Rate % P.A.	Effective Yield % P.A.	Redemption Amount on Maturity
I	27 Months	Monthly	8.25%	8.57%	1000
II	38 Months	Monthly	8.50%	8.84%	1000
III	60 Months	Monthly	8.75%	9.10%	1000
IV	72 Months	Monthly	9.50%	9.92%	1000
V	87 Months	Monthly	9.75%	10.20%	1000
VI	27 Months	Cumulative	NA	8.58%	1203
VII	38 Months	Cumulative	NA	8.83%	1307
VIII	60 Months	Cumulative	NA	9.10%	1546
IX	87 Months	Cumulative	NA	10.19%	2022

Nature of Issue: Here series IV, V and XI are UnSecured.and rest of the Series are secured

Other Issue Details

Issue Period	07 Apr 2021 to 29 Apr 2021
Market Timing	10:00AM to 5:00PM
Post Issue Modification Date	30 Apr 2021
Offer Price / Face Value	Rs. 1,000 each NCD
Minimum Bid Quantity	10 NCDs i.e., Rs.10,000 (across all options of NCDs)

How to apply for Muthoot Fincorp NCD

If you are planning to apply for this NCD issue then you can apply here through online and offline both modes. if you are planning to apply through online mode then you can apply here through your net banking option just like you apply for your Equity IPOs, you can also apply here through using the BSE Direct Platform. Now if you are planning to apply through offline mode then you have to fill the physical application form and have to submit it to your broker.

Watch this video know about this NCD Issue in Hindi