Muthoot Fincorp Tranche II NCD October 2023: Everything you need to know

10 Oct 2023 , 03:21 PM

Muthoot Fincorp Limited is a non-deposit-taking Non-Banking Financial Company (NBFC) that specializes in providing secured loans by using gold ornaments and jewelry as collateral. The company’s core focus revolves around offering both personal and business loans, with gold serving as the security for these loans. Their gold loan product is accessible to individuals for both personal and business needs, serving as a reliable source of short-term liquidity.  The company is launching a debt offer, and the subscription period for this offer will be from October 13 to October 27, 2023. Click here to apply in the Muthoot Fincorp Limited NCD. 

The company is raising Rs 225 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-/Negative by CRISIL (pronounced as CRISIL double A minus rating with a Negative outlook).

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

These NCDs have tenures of 24 months, 36 months, 60 months, and 96 months. It offers coupon rates from 8.65% to 9.44% based on the selection of investors. The frequency of interest payments will be Monthly, Annually 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 NCD October Tranche II 2023:

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7	Series 8	Series 9	Series 10
Frequency of Interest Payment	Monthly	Monthly	Monthly	Annual	Annual	Annual	Cumulative	Cumulative	Cumulative	Cumulative
Nature	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured
Tenor	24 Months	36 Months	60 Months	24 Months	36 Months	60 Months	24 Months	36 Months	60 Months	96 Months
Coupon (% per Annum)	8.65%	8.90%	9.05%	9.00%	9.27%	9.44%	NA	NA	NA	NA
Effective Yield (% per Annum)	8.99%	9.26%	9.42%	8.99%	9.26%	9.43%	8.99%	9.26%	9.43%	9.05%
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 1,000.00	Rs 1,188.00	Rs 1,305.00	Rs 1,570.00	Rs 2,001.00

 

RHP:

https://www.sebi.gov.in/sebi_data/attachdocs/oct-2023/1696481663477.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 Tranche II 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.