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Muthoot Finance NCD Tranche II September 2023muthoot finance ncd issue

Details

NCD Issue Opens on 21 September 2023
NCD Issue Closes on 06 October 2023 

 # NCD Guidance is given at the bottom of the post

About the Company:

 The company is the largest gold loan NBFC in India in terms of loan portfolio. According to the CRISIL Limited, CRISIL Research –Industry Report on Gold Loans in March 2023, it was ranked the largest gold loan NBFC.It provides personal loans and business loans secured by gold jewelry, or Gold Loans, primarily to individuals who possess gold jewelry 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 requirements.
According to the CRISIL Research –Industry Report on Gold Loans in March 2023 its branch network was the largest among gold loan NBFCs in India. Its Gold Loan portfolio as of June 30,2023 comprised approximately 8.34 million loan accounts in India that it serviced through 4,742 branches across 22 states, the national capital territory of Delhi and six union territories in India.
As of June 30, 2023, it employed 27,701 persons in its operations.
Its operating history has evolved over a period of 84 years since M George Muthoot (the father of its Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887. Since its formation, it has broadened the scale and geographic scope of our gold loan operations so that, as of March 31, 2012, it was India’s largest provider of Gold Loans.
For the year ended March 31,2021, 2022, and 2023 revenues from its gold loan business constituted95.88%, 96.67% and 95.10% respectively of its total income. In addition to its Gold Loans business, it provides money transfer services through its branches as sub-agents of various registered money transfer agencies and also provide collection agency services.
It also provides micro-finance, housing finance, vehicle and equipment finance and insurance broking services through its subsidiaries. It believes that these services will enable it to improve its visibility, profitability as well as increase customer presence in its branches.

As of March 31,2023, it had Rs 296,243.02 millionas borrowings from banks and financial institutions. It also raised capital by issuing commercial paper and listed and credit rated non-convertible debentures under private placement mode or through public issues to various institutional corporate, high net worth and retail investors.
Its Gold Loans have a maximum 12-month term. Its average disbursed gold loan amount outstanding was Rs 75,940 per loan account as of March 31,2023. For the year ended March 31, 2023, its loan portfolio earned, on an average, interest of 1.48% per month, or 17.70% per annum. As of March 31,2021,2022 and 2023 our portfolio of outstanding principal amount of gross Gold Loans under management was, Rs 519,265.70 million, Rs 575,313.13 million and Rs 618,753.19 million respectively, and approximately170.61 tons,187.04 tons and 179.93 tons respectively, of gold jewelry was held by it as security for its Gold Loans.
For the year ended March 31, 2021, 2022 and 2023 its total income was at Rs 105,743.59 million, Rs 110,983.93 million and Rs 105,437.48 million which shows a year over year increase of 21.23%, 4.96% and a decline of 4.99% respectively. For the year ended March31, 2021, 2022 and 2023 our profit after tax was at Rs 37,221.78 million, Rs 39,543.04 million and Rs 34,753.31

Get more details about the company @ https://www.muthootfinance.com/

NCD Promoter: Mr. George Thomas Muthoot, Mr. George Jacob Muthoot, and Mr. George Alexander Muthoot

NCD Rating
The NCDs proposed to be issued under this Issue have been rated [ICRA] AA+/Stable (pronounced as ICRA Double A plus rating with stable outlook) by ICRA Limited.

Muthoot Finance NCD Tranche II September 2023 Detail
Issue Open September 21, 2023 – October 6, 2023
Security Name Muthoot Finance Limited
Security Type Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base) Rs 100.00 Crores
Issue Size (Shelf) Rs 2,600.00 Crores
Issue Price Rs 1000 per NCD
Face Value Rs 1000 each NCD
Minimum Lot size 10 NCD
Market Lot 1 NCD
Listing At BSE
Credit Rating [ICRA] AA+/Stable by ICRA Limited
Tenor 24, 36, and 60 Months
Series Series I to VII
Payment Frequency Monthly and Annually
Basis of Allotment First Come First Serve Basis
Debenture Trustee/s Idbi Trusteeship Services Ltd.
NCD Allocation Ratio  
Category  NCD’s Allocated
Institutional 5%
Non-Institutional 20%
HNI 25%
Retail 50%
Total 100%
NCD’s Offered by Category
Category  NCD’s Reserved
Institutional 1,00,000
Non-Institutional 1,00,000
Retail 3,00,000
Category 4 5,00,000
Total NCD’s 10,00,000
Muthoot Finance Limited NCD Coupon Rates              
# Series 1 Series 2 Series 3 Series 4 Series 5 Series 6 Series 7
Frequency of Interest Payment Monthly Monthly Annual Annual Annual NA NA
Nature Secured Secured Secured Secured Secured Secured Secured
Tenor 36 Months 60 Months 24 Months 36 Months 60 Months 36 Months 60 Months
Coupon (% per Annum) 7.75% 7.75% 7.75% 8.00% 8.00% NA NA
Effective Yield (% per Annum) 8.75% 8.75% 8.75% 9.00% 9.00% 9.00% 9.00%
Amount on Maturity (In Rs.) Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,256 Rs 1,469

Objects of the Issue
The Net Proceeds raised through the Tranche II Issue will be utilized for the following activities:

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.

 

 

Company Financials      
Muthoot Finance NCD Tranche II September 2023 Financial Information (Restated Consolidated)
Period Ended 31-Mar-21 31-Mar-22 31-Mar-23
Assets 68,641.44 76,316.47 80,148.92
Revenue 11,570.20 12,238.16 11,975.01
Profit After Tax 3,818.87 4,031.42 3,669.77
Net Worth      
Reserves and Surplus      
Total Borrowing      
Amount in Rs Crore

Address of the Company
Muthoot Finance Limited
2nd Floor, Muthoot Chambers,
Opposite Saritha Theatre Complex,
Banerji Road, Kochi – 682 018

Phone: +91 484 239 4712
NCD Lead Managers
A.K. Capital Services Limited
NCD Registrar
Link Intime India Private Ltd

Muthoot Finance NCD Tranche II September 2023
Red Herring Prospectus

Analysis & Guidance:

Kosamattam Finance NCD September 2023
Subscription Status 
On 21.09.2023 @ 5.00 pm
Category Subscription 
Institutional 0.00 T
Non-Institutional 0.00 T
HNI 0.00 T
Retail 0.00 T
Total 0.00 T

Muthoot Finance NCD Tranche II September 2023

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