Muthoot Fincorp Secured NCD Bonds Tranche II will open for applications on October 11, 2024. Muthoot Fincorp Limited is a leading NBFC company that has emerged as a prominent gold loan company in India. The interest rate is up to 10.1%. These NCDs are issued in 13 different series and have a validity period of 24 to 92 months. Interest is paid monthly, annually, or cumulatively, depending on the option you choose. Should I invest in Muthoot Fincorp NCD issued October 2024? What are the risk factors to consider before investing in such high-risk NCDs?
About Muthoot Fincorp Limited
These are systemically important NBFCs registered with the RBI that do not accept deposits.
The company is one of the prominent money lenders in the Indian market. Our personal and business loans backed by gold jewelry and ornaments are available to individuals who are not ready or unable to obtain formal credit in a timely manner, or who have no access to credit at all. It is designed to serve the business and personal purposes of individuals who cannot. unanticipated or other short-term liquidity requirements;
Muthoot Fincorp NCD – October 2024 Issue Details
| Subscription start date | October 11, 24 |
| Subscription end date | October 24, 2017 |
| Issued securities name | Muthoot Fincorp Limited |
| Type of security | Secure, redeemable and non-convertible NCDs |
| Publication size (base) | 75 billion rupees |
| Publish size (option to keep beyond subscription) | 175 million rupees |
| Total publication size | 250 million rupees |
| Issue price | 1,000 rupees per security deposit |
| face value | 1,000 rupees per security deposit |
| series | From I to XIII |
| minimum lot size | 10 bonds and then 1 bond |
| tenure | 26, 36, 60, 72, 92 months |
| Interest payment frequency | Monthly, annual, cumulative |
| Listed | Within 6 business days for BSE |
| lead manager | Nuvama Wealth Management Limited |
| bond trustee | VALDMAN TRUSTEESHIP PRIVATE LIMITED. |
What is Muthoot Fincorp NCD interest rate?
| series | I | II | Ⅲ | Ⅳ | V | VI | VII | Ⅷ | IX | × | XI | XII | XIII |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | monthly | monthly | monthly | yearly | yearly | yearly | yearly | cumulative | cumulative | cumulative | cumulative | cumulative |
| Period of employment (months) | twenty four | 36 | 60 | 72 | twenty four | 36 | 60 | 72 | twenty four | 36 | 60 | 72 | 92 |
| Coupon (% per year) | 9.00% | 9.25% | 9.45% | 9.65% | 9.40% | 9.65% | 9.90% | 10.10% | N.A. | N.A. | N.A. | N.A. | N.A. |
| Effective yield (%/year) | 9.38% | 9.65% | 9.87% | 10.09% | 9.40% | 9.65% | 9.89% | 10.10% | 9.40% | 9.65% | 9.90% | 10.10% | 9.50% |
| Amount at maturity (Rs.) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,197 | 1,318 | 1,604 | 1,782 | 2,006 |
What is Muthoot Fincorp NCD’s rating?
These collateralized NCDs are rated AA-/Stable by CRISIL, indicating that products with this rating are considered to have a high degree of security and very low credit risk with respect to timely repayment of financial obligations. I am.
What about the company’s profits?
Consolidated profit is as follows.
- Year ended March 2019 – 372.6 million
- Year ending March 2020 – 257.9 million yen
- Year ending March 2021 – 397.2 million yen
- Year ending March 2022 – 41.255 billion yen
- Year ending March 2023 – 64.642 billion yen
- Year ending March 2024 – 1,047,980 million yen
Also read: Edelweiss Financial Services NCD October 2024 interest rate is 11%
Why invest in Muthoot Fincorp NCD?
- These NCDs offer high interest rates ranging from 9.0% to 10.1% with yields ranging from 9.38% to 10.1%.
- These are secure NCDs. If the company closes down or goes into financial trouble for any reason, NCD investors have priority repayment of the capital and interest backed by the company’s assets. Therefore, it is safe to invest in safe NCDs.
- The company has been making stable profits in recent years. This indicates that the company has the ability to continue paying interest to NCD holders or payments to creditors.
Interested in investing in Muthoot Fincorp NCD?
The risk factors for investing in these non-convertible bonds include:
- We are subject to RBI inspection and any adverse action taken could affect our business and operations.
- The Company’s operations require significant amounts of capital, and any disruption to its funding sources could affect the Company’s operations.
- A company’s credit rating may change at any time and may affect the trading price of an NCD.
- A company’s financial performance is particularly sensitive to interest rate risk.
- Please refer to Muthoot Fincorp NCD October 24 Prospectus Addresses complete risk factors.
Should you invest in Muthoot Fincorp NCD – October 2024 issue?
- Muthoot Fincorp offers safe NCDs in this issue. These NCDs offer high interest rates of up to 10.1%. These NCDs have a good credit rating of AA-/Stable by CRISIL.
- On the other hand, you need to understand the risks involved in investing in NCD bonds of NBFC companies. In the past, NBFC companies have delayed or defaulted on interest payments and capital repayments.
High-risk investors can invest in these NCD bonds after understanding all these risk factors.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified – Investment Advisor and a NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years. Contact him at suresh@myinvestmentideas.com.
