Tuesday, 30 August 2011

Muthoot Finance Non Convertible Debentures

Muthoot Finance Limited one of the leading gold financing company issues Non Convertible Debentures (NCD). The face value of a single unit is Rs. 1000 and the minimum required investment is Rs. 5000 and multiples of one bond thereafter. There are three investment options for these secured redeemable non convertible debentures according to the maturity of the debenture.

  1. 24 months NCD will be matured at the day it complete 24 months from the day of allotment and can earn 11.75% coupon rate.

  2. 36 months NCD will be matured at the day it complete 36 months from the day of allotment and can earn 12% coupon rate.

  3. 60 months NCD will be matured at the day it complete 36 months from the day of allotment and can earn 12% coupon rate.


The effective yield for the first option is 12% and the second and third options are 12.25% for corporate, individual and HUF investors.

The company's gold loan portfolio as on March 31, 2011, comprised 47 lakh loan accounts serviced through 2,733 branches. The Company (Muthoot Finance Limited) plans to collect Rs. 500 crore through this NCD and w ill be utilised for various financing activities including lending and investments, to repay existing liabilities and to meet working capital requirements.

The NCDs have been rated AA-/stable by CRISIL and AA-(stable) by ICRA.

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2 comments :

  1. [...] DSP BlackRock FMP – 6M – Series 11- NFO SBI Gold Fund,Conveniently Invest in Gold Muthoot Finance Non Convertible Debentures [...]

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  2. [...] Muthoot Finance, India’s Largest Gold Loan Company issues Non Convertible Debentures  (NCD) which doubles your money in 6 years. This is a public issue of Secured Redeemable NCDs with face value of Rs. 1000 per unit. The company wish to accumulate Rs. 250 Crores with an option  to retain over subscription up to Rs. 250 crores on issuance of additional NCD which aggregates Rs. 500 Crores. The company has 73 years heritage and with largest branch networks in gold loan Non Banking Finance Companies (NBFC). The investor is free to choose any of the 5 options of the NCD. [...]

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