Muthoot Finance Ltd - NCD Issue

Muthoot Finance - Product Note.doc Download this file

Muthoot Finance Ltd. NCD

Issue Opening on: March 02, 2012

Tentative Terms of the Issue

Options

I

II

III

IV

Frequency of Interest Payment

Annual

Annual

Annual

Cumulative

In Multiples of

1,000(1NCD)

1,000(1NCD)

1,000(1NCD)

1,000(1NCD)

Coupon Rate (%) for NCD

13.00%

13.25%

13.25%

NA

Effective Yield (per annum)

13.00%

13.25%

13.25%

13.43%

Period

24Months

36Months

60Months

66Months

Redemption amount (per NCD)

Repayment of the Face Value plus any interest that may have accrued at the Redemption Date.

Rs.2000


Company Profile

Muthoot Finance Ltd (MUTHOOT), is a systemically important non-deposit taking NBFC focusing on gold loans to individuals for personal and business purpose. As on September 2011, Gold loans under management was reported to be Rs 20,767 cr with 129.5 tons of gold jewellery as security for the loans. As on Sept 2011; Co’s network was spread across 3,274 branches across 20 states and 5 union territories with close to 5.5 mn loan accounts.


Promoter Of the Company:
M. G. George Muthoot is a graduate in engineering from Manipal University, and is a businessman by profession. He is the National Executive Committee Member of the Federation of Indian Chamber of Commerce and Industry ("FICCI") and the current Chairman of FICCI‑Kerala State Council. He was conferred the Mahatma Gandhi National Award for social service for the year 2001 by the Mahatma Gandhi National Foundation. He is an active member of various social organisations including the Delhi Malayalee Association, Kerala Club

Investment Rationale

↗ The issue carries yield ranging from 13.00% p.a to 13.43% p.a depending up on the series applied for.

↗ Opportunity to invest in the largest Gold financing NBFCs of India.

↗ This NCDs are proposed to be listed on the BSE.

↗ Heritage of over 72 years

↗  Gold Loan AUM: `Rs.22694.9 Cr

↗ Largest branch network among gold loan NBFC

↗ 3,480 branches across India with more than 23219 employees.

↗ Approx. 50cr loan accounts

↗ Approx. 132 tons of gold held as loan security

↗ 69,905 share holders

↗ Market Capitalization of the company stands Rs5985cr as on February 25, 2012

↗ Net worth : Rs2862.9 Cr (Paid-up Equity Share capital + Reserves excluding Revaluation Reserves)

↗ Net Profit : Rs4,94.18 cr for the year FY 2011

↗ Net Profit : `s656.8 cr for the first 9months of the FY 2012

↗ Minimum Subscription : ` 5,000 (5 NCDs of face value ` 1,000 each)

↗ various models of interest payment

↗ Tenor : 24 / 36/ 60/ 66 Months

↗ Interest on application money and refunds at 13% p.a.**

↗ To be listed on BSE

 


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