Muthoot Fincorp Limited NCD: Key details you need to know

5 Apr 2023 , 10:37 AM

Muthoot Fincorp Limited is a flagship company of Muthoot Pappachan Group is a non-deposit taking NBFC. The company is engaged in the Gold loans business for over two decades and is headquartered in Kerala, India. It is coming up with a debt offer which is starting for subscription from April 12 to April 26, 2023. Click here to apply in the Muthoot Fincorp Limited NCD. 

The company is raising Rs 150 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 company has received rating of CRISIL AA-/Stable by CRISIL Ratings Limited.

Muthoot Fincorp Limited has reserved 5% quota for institutional investors, 35% for non-institutional investors, and 60% for retail investors.

The company will use the net proceeds from the issue for working capital requirements and other general corporate purposes.

These NCDs have tenures of 27 months, 42 months, 60 months and 84 months. It offers coupon rates from 8.40% to 9.15% 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 Muthoot Fincorp Limited

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7	Series 8
Frequency of Interest Payment	Monthly	Monthly	Monthly	Monthly	Annual	Cumulative	Cumulative	Cumulative
Nature	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured
Tenor	27 Months	42 Months	60 Months	84 Months	60 Months	27 Months	42 Months	84 Months
Coupon (% per Annum)	8.40%	8.65%	8.80%	9.00%	9.15%	NA	NA	NA
Effective Yield (% per Annum)	8.71%	9.00%	9.15%	9.37%	9.15%	8.71%	9.00%	9.37%
Amount on Maturity (In Rs.)	Rs 1,000.00	Rs 1,000.00	Rs 1,000.00	Rs 1,000.00	Rs 1,000.00	Rs 1,207.00	Rs 1,353.00	Rs 1,873.00

 

RHP:

https://www.sebi.gov.in/sebi_data/attachdocs/apr-2023/1680519357036.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 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.

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