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Muthoot Fincorp Limited NCD: Essential details you need to know

8 Apr 2024 , 01:04 PM

Established in 1997, Muthoot Fincorp Limited operates as a non-deposit-taking NBFC (Non-Banking Financial Company). Specializing in providing secured loans, the company focuses on personal and business loans backed by gold ornaments and jewellery. These gold loan products cater to the short-term liquidity needs of both individuals and businesses.

As of September 30, 2023, Muthoot Fincorp Limited managed a substantial gold loan portfolio, serving approximately 31.68 lakh loan accounts.

With a widespread presence, the company boasted 3,619 branches spread across 24 states, including the Union Territory of Andaman and Nicobar Islands, as well as the National Capital Territory of Delhi. Additionally, the company’s operations employed a workforce of 20,507 individuals, which included 91 contracted experts, underscoring its significant footprint in the industry.

The company is launching a debt offering, and the subscription period for this offer will be from April 10 to April 25, 2024. Click here to apply for the Muthoot Fincorp Limited NCD.

The company is raising ₹100 crore from the issue at a price of ₹1000 each. Investors need to apply for a minimum of 10 NCDs in a lot. The company has received a rating of CRISIL AA-/Stable.

The company will use the net proceeds from the issue for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the Company and other general corporate purposes.

Edelweiss Financial Services has allotted 5% to institutional investors. Non-institutional allotted 35% of the offer, and retail investors allotted 60%.

These NCDs have tenures of 26, 38, 60, 72, and 94 Months. It offers coupon rates from 8.90% to 10.00% based on the selection of investors. The frequency of interest payments will be monthly, annually and cumulatively basis. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.

Check the coupon rates of NCDs of Muthoot Fincorp Limited:

Series 1

Series 2

Series 3

Series 4

Series 5

Series 6

Series 7

Series 8

Series 9

Series 10

Series 11

Series 12

Series 13

Frequency of Interest Payment

Monthly

Annual

Cumulative

Nature

Secured

Tenor

26 Months

38 Months

60 Months

72 Months

26 Months

38 Months

60 Months

72 Months

26 Months

38 Months

60 Months

72 Months

94 Months

Coupon (% per Annum)

8.90%

9.15%

9.35%

9.55%

9.25%

9.50%

9.75%

10.00%

Effective Yield (% per Annum)

9.26%

9.54%

9.75%

9.97%

9.27%

9.52%

9.74%

10.00%

9.27%

9.52%

9.74%

10.00%

9.25%

Amount on Maturity (In Rs.)

₹1,000.00

₹1,212.00

₹1,334.00

₹1,592.00

₹1,772.00

₹2,000.00

RHP:

https://www.sebi.gov.in/sebi_data/attachdocs/apr-2024/1712037032757.pdf

Tax implications:

Interest on debentures received by resident debenture holders would be subject to tax at the normal rates of tax in accordance with and subject to the provisions of the I.T. Act.
As per section 2(29AA) read with section 2(42A) of the I.T. Act, a listed debenture is treated as a long-term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
As per section 2(42A) of the I.T. Act, a listed debenture is treated as a short-term capital asset if the same is held for not more than 12 months immediately preceding the date of its transfer.
In case debentures are held as stock in trade, the income on transfer of debentures would be taxed as business income or loss in accordance with and subject to the provisions of the I.T. Act.
Income tax is deductible at source on interest on debentures, payable to resident debenture holders at the time of credit/ payment as per the provisions of section 193 of the I.T. Act.

Muthoot Fincorp NCD is managed by SMC Capitals Limited. Integrated Registry Management Services Private Limited is the registrar of NCD and Vardhman Trusteeship Private Limited is the debenture trustee to the same.

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