Muthoot Finance Limited NCD: Everything you need to know

9 Feb 2023 , 02:01 AM

Muthoot Finance Limited is a Kerala-based gold loan NBFC company with a legacy of 800 years of the family business. The company offers a wide range of products Gold loans, Housing Finance (Home Loans), Personal loans, Insurance, Gold Coins, Money Transfer Services, Foreign Exchange, Mutual Funds, Micro Finance and Vehicle loan. It is coming up with a debt offer which is starting for subscription from February 08 to March 03, 2023. Click here to apply in the Muthoot Finance Limited NCD. 

The company is raising Rs 500 crore from the issue at a price of Rs 1000 each. Investors need to apply for a minimum of 10 NCDs in a lot. The NCD has received rating of [ICRA] AA+/Stable (pronounced as ICRA Double A plus rating with stable outlook) by ICRA.

Muthoot Finance Ltd has reserved 5% quota for institutional investors, 5% for non-institutional investors, 40% for high net-worth investors and 50% for retail investors.

The company will use the net proceeds from the issue for the purpose of lending and for other general corporate purposes.

These NCDs have tenures of 25 months, 37 months, and 61 months. It offers coupon rates from 8.25% to 8.60% based on the selection of investors. The frequency of interest payments will be Monthly, Annual or Cumulative as per the choice of investors. 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 Edelweiss Financial Services Limited

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7
Frequency of Interest Payment	Annual	Cumulative	Annual	Cumulative	Monthly	Annual	Cumulative
Nature	Secured
Tenor	37 months	61 months	25 months	37 months	61 months	37 months	61 months
Coupon Rate (Retail)	8.25%	8.35%	8.25%	8.50%	8.60%	NA	NA
Effective Yield (% per Annum)	8.25%	8.35%	8.25%	8.50%	8.60%	8.50%	8.60%
Amount on Maturity	Rs 1000	Rs 1000	Rs 1000	Rs 1000	Rs 1000	Rs 1286.34	Rs 1521.42

 

RHP:

https://www.bseindia.com/markets/publicIssues/DisplayIPO.aspx?id=2917&type=DPI&idtype=1&status=L&IPONo=6033&startdt=08/Feb/2023

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 longterm 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.

On the financial performance front, the total revenue of Muthoot Finance Limited for fiscal 2022, 2021, and 2020 were Rs. 9707.27 crore, Rs. 11566.42 crore, and Rs. 12237.46 crore, respectively.

Muthoot Finance NCD is managed by A.K. Capital Services Ltd. Link Intime India Pvt Ltd is the registrar of NCD and IDBI Trusteeship Services Limited is debenture trustee to the same.