Muthoot Fincorp Limited (MFL) is proposing to issue Secured, Redeemable, Non-Convertible Debentures (NCDs) in October 2023. The issue will open on October 13, 2023, and close on October 27, 2023. The issue size is Rs. 75 crore with a greenshoe option of Rs. 150 crore, aggregating to Rs. 225 crore.
Detailed Information of Muthoot Fincorp NCD IPO October 2023
| Name of the Issuer | Muthoot Fincorp Limited |
| Issue Open Date | Friday, October 13, 2023 |
| Issue Close Date | Friday, October 27, 2023** |
| Allotment | Nov 02, 2023 |
| Face Value | Rs.1,000 per NCD |
| Issue Price | Rs.1,000 per NCD |
| Lot Size | In Multiples of thereafter (₹) – ₹ 1,000 (1 NCD) |
| Minimum Application | 10 NCDs (Rs.10,000.00) & multiple of 1 NCD thereof |
| Listing Date | Nov 07, 2023 |
| Rating | “CRISIL AA-/Stable” |
| Tenure | Upto 96 Months |
| Listing | BSE |
Issue Break up
| Category | Allocation | Amount In crores | |
| Base Issue | Issue | ||
| Institutional Investors | 5% | 3.75 | 11 |
| Non-Institutional Investors | 35% | 26.25 | 78.75 |
| Retail Individual Investors | 60% | 45 | 135 |
| Total | 100% | 75 | 225 |
About Issuer:
Muthoot Fincorp Limited, set up in 1997, is a non-deposit-taking, systemically-important NBFC, engaged in lending against gold jewellery. It is the flagship company of the MPG, which has diverse business interests such as hospitality, real estate and power generation. The company also distributes mutual funds, and general and life insurance products and operates in the money-transfer segment.
MFL (on a standalone basis) had an AUM of Rs 18,496 crore. MML had AUM of Rs 7,401 crore, MCSL has Rs 2,036 crore and Muthoot Housing has Rs 1,423 crore as of September 30, 2022.
Financial Table detailing different Series of NCDs issued by Muthoot Fincorp Limited:
The NCDs are rated AA-/Stable by CRISIL, which indicates that they have a high degree of creditworthiness. They are also secured by the assets of MFL.
Investors can invest in the NCDs through their brokers or through online platforms. The minimum investment amount is Rs. 10,000.
MFL is a non-deposit-taking NBFC that is primarily engaged in the business of offering personal and business loans secured by gold ornaments and jewellery. It is one of the largest gold loan companies in India.
The company intends to utilize the net proceeds from the NCD issue towards funding its working capital requirements and for general corporate purposes.
Here are some factors to consider while investing in Muthoot Fincorp Limited NCD IPO 2023:
- Credit rating: The NCDs are rated AA-/Stable by CRISIL, which indicates that they have a high degree of creditworthiness. This means that the company is likely to be able to meet its financial obligations to investors.
- Security: The NCDs are secured by the assets of MFL. This means that if the company defaults on its payments, investors may be able to recover their investment by selling the underlying assets.
- Interest rates: The NCDs offer attractive interest rates, ranging from 8.99% to 9.53% per annum. This is higher than the interest rates offered on most other fixed-income investments, such as bank deposits and government bonds.
- Company track record: MFL is a well-established company with a strong track record. It is one of the largest gold loan companies in India.
- Investment goals and risk tolerance: Consider your individual investment goals and risk tolerance before investing in the NCDs. If you are looking for a safe and steady investment with attractive returns, the NCDs may be a good option for you. However, if you are looking for a high-risk, high-reward investment, the NCDs may not be the right choice for you.
Overall, Muthoot Fincorp Limited NCD IPO in October 2023 appears to be a good investment opportunity for investors who are looking for a safe and steady investment with attractive returns.