Tuesday, May 21, 2019

Muthoot Finance Limited NCD

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Muthoot Finance Limited is the largest gold loan NBFC in India in terms of loan portfolio. The company was established in 1939 headquartered in the south Indian state of Kerala. Company Gold Loan portfolio as of September 30, 2018 comprised approximately 8.15 million loan accounts in India that it serviced through 4,370 branches across 23 states, the national capital territory of Delhi and five union territories in India. As of September 30, 2018 Company employed 23,888 persons in its operations.

The company has come out with an issue of secured redeemable non-convertible debentures of Rs. 100 crores with an option to retain oversubscription up to 900 Crores for issuance of additional NCDs aggregating up to Rs. 1000 Crores.

The issue opens on May 10, 2019 and closes on June 10, 2019. The company is offering an interest rate or a coupon of 10% per annum.

The face value of the NCD is Rs. 1000 and minimum application amount is Rs. 10000 or 10 NCDs and in multiple of Rs. 1000 or 1 NCD thereafter. The issue shall get listed on BSE. DMAT account is mandatory for trading.

CRISIL and ICRA have given a rating of AA/Stable to the issue. Link Intime India Private Limited is the registrar and Edelweiss Financial Services Limited and AK Capital Services Limited is the lead manager of the issue.

Interest rates have gone down so some investors might get tempted for such company fixed deposits. But investors should understand the inherent risks of company fixed deposits. Investors have burnt their money with Jaypee, Unitech etc. So, tread with caution if you want to invest in them. Incase, you want to look at some banks offering higher interest rates than others, checkout: https://www.myfamilyinvestment.com/2012/04/latest-resident-nro-bank-fixed-deposit.html

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