Muthoot Finance NCD September 2019
Muthoot Finance is India’s largest gold loan company in terms of the loan portfolio and branch network. It has launched the scheme name as Muthoot Finance NCD. It is a secured NCD. The scheme will open for subscription on 27th September 2019. The high yield of these NCDs offer over 10 percent per annum, it would attract the investors. The subscription period of the scheme will close on 25th October 2019.
Muthoot Finance NCD Sep 2019 Detail
|Issue Open||Sep 27, 2019 – Oct 25, 2019|
|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 900.00 Crores|
|Issue Price||Rs 1000 per NCD|
|Face Value||Rs 1000 each NCD|
|Minimum Lot size||10 NCD|
|Market Lot||10 NCD|
|Market Lot||1 NCD|
|Credit Rating||ICRA AA/Stable, CRISIL AA/Stable|
|Tenor||24 months/ 38 months/ 60 months/ 90 months|
|Series||Series 1 to 10|
|Payment Frequency||Monthly and Annual|
|Basis of Allotment||BSE|
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, yearly, and cumulative. Individual coupon rates ranged between 9.25% to 10.00%.
All categories of investors are eligible to apply for this secured NCD except for NRIs. They cannot apply to this NCD.
This secured NCD will manage by AK Capital Services Ltd and Edelweiss Financial Services. Muthoot Fincorp NCD has proposed to be listed on the Bombay stock exchange. The NCDs are liquid investments.
Objects of the Issue
The net proceeds raised through the issue will utilize for lending and general corporate purposes.
The issue is available in 10 series that come with a fixed period of 2 years, 38 months, 5 years, 90 months. It offers Rs 100 crores with an option of retaining over a subscription of Rs 900 crores. The Face value of the NCD bond is Rs 1000.
Muthoot Finance NCDs have been rated as AA by ICRA and CRISIL AA/ Stable by CRISIL.
Muthoot Finance NCD Coupon Rates
|Series||Category||Tenor||Frequency of Interest Payment||Coupon Rate||Effective Yield||Amount on Maturity|
|II||38 Months||Once a month||9.50%||9.50%||Rs 1,000|
|III||5 Years||Every Month||9.75%||9.75%||₹1,000|
|IV||2 Years||Annually||9.50%||9.50%||Rs 1,000|
|VI||5 Years||Annually||10.00%||10.00%||Rs 1,000|
|VIII||38 Months||NA||N/A||9.50%||Rs 1,333.72|
|X||90 months||N/A||N/A||9.67%||Rs 2,000|
|Qualified Institutional Buyers (QIB)||10%|
|Non-Institutional Investors (NII)||10%|
|High Networth Investors (HNI)||30%|
|Retail Investors (RII)||50%|
The scheme attracts the investors with high yields up to 10 percent. A source analyzed that It offers secured NCDs which are safe yet this time. Moreover, It gets a good credit rating from CRISIL and ICRA Rating agency. Although, gold finance companies are riskier. Though Muthoot finance is offering secured NCDs, there could be a delay in the interest and repayment of principal at maturity.
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.