* Effective yield p.a for category II (Non-Institutional) and Category III (Individual) - Options V, IX & XI.
| Issue Opens | Monday, November 18, 2013 | Minimum Application | 10 NCDs (Rs. 10,000) across all options of NCDs |
| Issue Closes | Monday, December 2, 2013 | Effective Yield (For Category III) |
11.00% per annum for Options VII 11.50% per annum for Options I & III 12.00% per annum for Options II, IV, VI, VIII & X 12.25% per annum for Options V, IX & XI |
| Issue Price | Rs. 1000/- per NCD | Credit Ratings | '[ICRA]AA-/Negative' by ICRA 'CRISIL AA-/Negative' by CRISIL |
Muthoot Finance Ltd is the largest gold financing company in India in terms of loan portfolio with a market share of 20.3% as of March 31, 2012, according to the IMaCS Industry Report 2012. It provides personal loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery 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.
They are a "Systemically Important Non-Deposit Taking NBFC" (NBFC-ND-SI) headquartered in the south Indian state of Kerala. Their operating history has evolved over a period of 74 years since M George Muthoot (the father of our 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, they have broadened the scale and geographic scope of our gold loan operations so that, as of March 31, 2012, They were India’s largest provider of Gold Loans.
| Issue Opens | Monday, November 18, 2013 |
| Issue Closes | Monday, December 2, 2013 |
| Issue Price | Rs. 1000/- per NCD |
| Face Value | Rs. 1000/- per NCD |
| Minimum Application | 10 NCDs (Rs. 10,000) across all options of NCDs |
| Rating | '[ICRA]AA-/Negative' by ICRA and 'CRISIL AA-/Negative' by CRISIL |
| Listing On | BSE |
| Registrar | Link Intime India Private Limited |
| Effective Yield (Category III) |
11.00% per annum for Options VII 11.50% per annum for Options I & III 12.00% per annum for Options II, IV, VI, VIII & X 12.25% per annum for Options V, IX & XI |
Allotment is on First Come First Serve Basis
| Options | IV | V | VI |
| Issue Price (Rs. / NCD) | Rs. 1,000/- (1 NCDs) | ||
| Frequency of Interest Payment | Annually** | Annually** | Annually** |
| Tenor | 24 Months | 36 Months | 60 Months |
| Base Coupon (% per annum) for Category I, II & III | 11.25% | 11.50% | 11.25% |
| Additional incentive on Base Coupon Rate (% Per Annum) Record Date as Applicable to category II & III | 0.75% | 0.75% | 0.75% |
| Aggregate of the Base Coupon rate and the additional incentive on the Base Coupon rate on ony record date Coupon Rate (% Per Annum) as applicable to Category I | 11.25% | 11.50% | 11.25% |
| Aggregate of the Base Coupon rate and the additional incentive on the Base Coupon rate on ony record date Coupon Rate (% Per Annum) as applicable to category II & III | 12.00% | 12.25% | 12.00% |
| Effective Yield (Per annum) for category I | 11.25% | 11.50% | 11.25% |
| Effective Yield (Per annum) for category II & III | 12.00% | 12.25% | 12.00% |
| Amount (Rs. / NCD) on Maturity for category I* | Rs.1000/- | Rs.1000/- | Rs.1000/- |
| Amount (Rs. / NCD) on Maturity for category II & III* | Rs.1000/- | Rs.1000/- | Rs.1000/- |
| Minimum Application | 10 NCDs (Rs. 10,000) across all options of NCDs | ||
| Mode of Payment | Through various option available | ||
| Nature of Indebtedness | Secured & Non-Convertible | ||
| Deemed Date of Allotment | Deemed Date of Allotment shall be the date as decided by the Board or the duly authorised committee of the Board constituted by resolution of the Board dated July 25, 2011, and as mentioned on the Allotment Advice / regret. All benefits under the NCDs including payment of interest will accrue to the NCD Holders from the Deemed Date of Allotment. Actual Allotment may occur on a date other than the Deemed Date of Allotment. | ||
| Security | Security for the purpose of this Issue will be created in accordance with the terms of the Debenture Trust Deed. | ||
*Subject to applicable tax deducted at source, if any
** With respect to Options where interest is to be paid on an annual basis, relevant interest will be paid on each anniversary of the Deemed Date of Allotment on the face value of the Secured NCDs. The last interest payment under annual Options will be made at the time of redemption of the Secured NCDs.
Click here to download the prospectus of this NCD Issue.
Issuer |
Muthoot Finance Limited |
| Issue Size | Public Issue by the Company of Secured NCDs and Unsecured NCDs aggregating upto Rs. 1,500.00 million with an option to retain over-subscription upto Rs. 1,500.00 million for issuance of additional Secured NCDs and Unsecured NCDs aggregating to a total of upto Rs. 3,000.00 million. The Unsecured NCDs will be in the nature of Subordinated Debt and will be eligible for Tier II capital. |
| Stock Exchanges proposed for listing of the NCDs | BSE |
| Mode of Allotment and Trading | NCDs will be issued in both physical (to the extent permitted) as well as dematerialised form. Trading in the NCDs will however take place compulsorily in dematerialised form. Please note, however, that Applicants cannot apply for Allotment of NCDs under Options VII, VIII, IX, X and XI in physical form. |
| Trading lot | 1 (one) NCD |
| Depositories | NSDL and CDSL |
| Security | Security for the purpose of this Issue will be created in accordance with the terms of the Secured Debentures Trust Deed. |
| Rating | '[ICRA]AA-/Negative' by ICRA |
| Issue Schedule * | The Issue shall be open from November 18, 2013 to December 02, 2013 with an option to close earlier and/or extend upto a period as may be determined by a duly authorised committee of the Board constituted by resolution of the Board dated July 25, 2011. |
| Pay-in date | 3 (three) Business Days from the date of upload of application in the book building system of BSE or the date of realisation of the cheques/demand drafts, whichever is later. |
| Deemed Date of Allotment | Deemed Date of Allotment shall be the date as decided by the Board or the duly authorised committee of the Board constituted by resolution of the Board dated July 25, 2011, and as mentioned on the Allotment Advice / regret. All benefits under the NCDs including payment of interest will accrue to the NCD Holders from the Deemed Date of Allotment. Actual Allotment may occur on a date other than the Deemed Date of Allotment. |
* The subscription list shall remain open at the commencement of banking hours and close at the close of banking hours for the period as indicated, with an option for early closure or extension by such period, as may be decided by the Board or the duly authorised committee of the Board constituted by resolution of the Board dated July 25, 2011. In the event of such early closure of or extension subscription list of the Issue, the Company shall ensure that notice of such early closure or extension is given to the prospective investors through an advertisement in a leading daily national newspaper on or before such earlier date or extended date of closure. Applications Forms for the Issue will be accepted only from 10:00 a.m. till 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by the BSE, on Working Days during the Issue Period. On the Issue Closing Date, Application Forms will be accepted only from 10:00 a.m. till 3.00 p.m. (Indian Standard Time) and uploaded until 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by the BSE.
| Categories | Allocation Ratio | Basis of allocation incase of over subscription | |
| Category I (Institutional Portion) |
|
15% of Overall Issue Size | On first-come-first-serve basis |
| Category II (Non-Institutional Portion) |
|
35% of Overall Issue Size | On first-come-first-serve basis |
| Category III (Individual Portion) |
|
50% of Overall Issue Size | On first-come-first-serve basis |
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