In the ever-evolving landscape of investment opportunities, non-convertible debentures (NCDs) have emerged as a preferred choice for investors seeking stable returns. Muthoot Fincorp Limited, a prominent player in the financial sector, is all set to launch its upcoming NCD offering. This blog post delves into the comprehensive details of the Muthoot Fincorp NCD IPO.
Overview of Muthoot Fincorp Limited
- Muthoot Fincorp Limited is a non-banking financial company (NBFC) headquartered in Kerala, India.
- It is the flagship company of the Muthoot Pappachan Group, one of the largest gold loan companies in India.
- Muthoot Fincorp was founded in 1998 and has since grown to become one of the leading NBFCs in India.
- The company offers a variety of financial products and services, including gold loans, personal loans, home loans, and commercial loans.
- Muthoot Fincorp Limited NCD is a fixed-income instrument that offers a fixed rate of interest. The interest rate is determined by the tenure of the NCD.
- The NCDs are rated “AA-/Stable” by CRISIL, which indicates a high degree of safety.
- The NCDs are listed on the BSE and NSE stock exchanges, which makes them liquid and easy to trade.
Muthoot Fincorp NCD Sep I 2023 Detail
| Issue Open | Sep 1, 2023 – Sep 14, 2023 |
| Security Name | Muthoot Fincorp Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 400.00 Crores |
| Issue Size (Shelf) | Rs 1,100.00 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 | CRISIL AA-/Stable |
| Tenor | 24, 36, 60 and 96 months |
| Series | Series I to X |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Vardhman Trusteeship Private Limited |
Muthoot Fincorp Limited NCD Coupon Rates
| Series | Tenure (Months) | Coupon (% per Annum) | Frequency | Effective Yield (% per Annum) | Amount on Maturity (In Rs. |
|---|---|---|---|---|---|
Series 1 | 24 Months | 8.65% | Monthly | 8.99% | Rs 1,000.00 |
Series 2 | 36 Months | 8.90% | Monthly | 9.26% | Rs 1,000.00 |
Series 3 | 60 Months | 9.05% | Monthly | 9.43% | Rs 1,000.00 |
Series 4 | 24 Months | 9.00% | Annual | 8.99% | Rs 1,000.00 |
Series 5 | 36 Months | 9.27% | Annual | 9.26% | Rs 1,000.00 |
Series 6 | 60 Months | 9.44% | Annual | 9.43% | Rs 1,000.00 |
Series 7 | 24 Days | NA | Cumulative | 8.99% | Rs 1,188.00 |
Series 8 | 36 Days | NA | Cumulative | 9.26% | Rs 1,305.00 |
Series 9 | 60 Days | NA | Cumulative | 9.43% | Rs 1,570.00 |
Series 10 | 96 Days | NA | Cumulative | 9.05% | Rs 2,001.00 |
Some of the Gold Loan products offered by the company are:
- Muthoot Blue Guide Gold loan
- Muthoot Blue Bright Gold loan
- Muthoot Blue Power Gold loan
- Muthoot Blue Bigg Gold loan
- Muthoot Blue Smart Gold loan
- 24×7 Express Gold loan
Key Features and Highlights:
- Lucrative Yield: Muthoot Fincorp Limited NCDs offer attractive interest rates ranging from 8.99% to 9.43% annually, making them a compelling choice for investors looking to grow their wealth steadily.
- Tenures: With tenures ranging from 24, 36, 60, and 96 months, investors have the flexibility to choose a tenure that aligns with their financial goals and risk appetite.
- Steady Income: The interest payments are made on a monthly basis, providing investors with a consistent source of income and the potential for effective financial planning.
- Affordable Investment: The minimum investment amount of Rs. 10,000 makes these NCDs accessible to a wide range of investors, from retail investors to high-net-worth individuals.
- High Credit Rating: Muthoot Fincorp Limited NCDs are rated AA-Stable by renowned credit rating agencies, reflecting the company’s strong financial stability and creditworthiness.
- Tax Implications: Investors should be aware of the tax implications associated with NCD investments. Interest income is subject to taxation as per the individual’s tax slab.
How to Invest Investing in Muthoot Fincorp Limited NCDs
- Documentation: Ensure you have the required KYC documents and other necessary paperwork.
- Select Series and Tenure: Choose the series and tenure that aligns with your investment goals.
- Submit Application: Fill out the application form provided by the company or through your brokerage platform.
- Payment: Make the investment amount through various payment modes such as cheque, online banking, or demand draft.
- Confirmation: Once the payment is processed, you will receive a confirmation and allotment of NCDs.
Conclusion
Muthoot Fincorp Limited NCDs present a promising investment avenue for those seeking steady returns backed by a reliable financial institution. With various tenure options, attractive interest rates, and a strong credit rating, these NCDs deserve careful consideration in your investment portfolio. However, as with any financial decision, it’s important to conduct thorough research and consult with financial advisors before making an investment.