Personal Finance Blog India –

Muthoot Finance NCD Issue – Nov 2013 To Open On 18-11-2013

Muthoot Finance – India’s biggest Gold loan company have come up with the issue of NCDs of Rs.150 crore with option of retaining over subscription of same amount totaling up to Rs.300 Crore.

Imp Dates:

  1. Issue open date:18-11-2013
  2. Issue Close Date:02-12-2013.

Interest Rates and Options:Following options are available for investors.

Below mentioned interest rates are for Category II – non-institutional investors and Categoty III – Individual Investors.

Series Interest rate for Category II & III investors Tenure Interest payment Frequency
I 11.50% 24 Months Monthly
II 12.00% 36 Months Monthly
III 11.50% 60 Months Monthly
IV 12.00% 24 Months Annually
V 12.25% 36 Months Annually
VI 12.00% 60 Months Annually
VII 11.00% 400 Days Cumulative
VIII 12.00% 24 Months Cumulative
IX 12.25% 36 Months Cumulative
X 12.00% 60 Months Cumulative
XI 12.25% 72 Months Cumulative

Security : Among above options Series I to X are of secured nature means investors of these series would have First pari passu charge of the identified immovable property,Current assets and future receivables of company while Series XI is of unsecured nature means investors would have subordinated claims.

Holding :

Investors can hold Series I to VI in either demat or physical mode but series VII to XI which are of cumulative mode can only be held in Demat form.

Min Investment amount : Rs.10,000 .

Credit Rating : AA- by CRISIL and ICRA.

should you invest or not:

Muthoot finance profits after Tax – PAT reported:

Year ended Profit in Crores
March 2009 97.70 Crores
March 2010 227.16 Crores
March 2011 494.21 Crores
March 2012 892.02  Crores
March 2013 1004.24 Crores

Profit Reported for Last 02 auarters of current financial year:

Quarter ended Profit after Tax (PAT)Reported
June 2013 193.89 Crores
Sept 2013 210.99 Crores

company have posted good profits and as well have applied for banking license.Company have declared that they are ready for banking platform.This is positive part for company as well recent regulations have largely reduced risk for Gold loan companies. Muthoot finance have also ventured into white label ATM business and intended to set 9000 white Label ATMs across the country..Investment decision should be individually customized and one can invest a small part after agreeing with the risks associated with the Gold prices and Gold loan companies.

Category: Fixed Income


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