Muthoot Mercantile NCD December 2023 – Introduction
Muthoot Mercantile Limited plans to launch secured NCD bonds on December 4, 2023. Muthoot Mercantile is his NBFC company in India that offers loans against gold and investments as well as unsecured loans. The maximum interest rate is 10.5%.This article provides some insights Mutoto Mercantile NCD Includes publication details, dates, and reviews for December 2023.
Also read: These 5 large-cap funds have generated the highest returns over the past 5 years
About Muthoot Mercantile Limited
The company is a non-deposit, non-banking financial company primarily engaged in the gold loan sector, mainly offering collateral for household and/or used gold jewelry to private customers who cannot immediately obtain formal credit. We lend money based on. Basics.
We also provide unsecured loans to individual customers.
As of August 31, 2023, the company operates in eight states and union territories: Tamil Nadu, Kerala, Haryana, Maharashtra, Madhya Pradesh, Odisha, Punjab and Uttar. It makes gold loans and unsecured loans to its customers from a network of 224 branches. Delhi, Pradesh.
As of August 31, 2023, the company employed 722 people in its operations.
The company is not associated with Muthoot Finance or Muthoot Fincorp, which has already issued several NCD bonds in the past.
Muthoot Mercantile NCD December 2023 issue details
| Subscription start date | December 4, 2023 |
| Subscription end date | December 15, 2023 |
| Issued securities name | Mutoto Mercantile Limited |
| Type of security | Secured, redeemable, non-convertible debentures (Secured NCDs) |
| Publication size (base) | 100 million rupees |
| Publish size (option to keep beyond subscription) | 100 million rupees |
| Total issue size | 200 million rupees |
| Issue price | 1,000 rupees per deposit |
| face value | 1,000 rupees per deposit |
| series | From I to XI |
| minimum lot size | 10 bonds and then 1 bond |
| tenure | 367 days, 18, 24, 36, 60, 75 months |
| Interest payment frequency | Monthly and cumulative |
| Listed | Within 6 business days for BSE |
| lead manager | Vivro Financial Services Private Limited |
| bond trustee | Mitcon Credencia Trusteeship Services Limited |
Muthoot Mercantile NCD December 2023 – Interest Rate
| series | I | II | Ⅲ | Ⅳ | V | VI | VII | VIII | IX | X | XI |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | cumulative | monthly | cumulative | monthly | cumulative | monthly | cumulative | monthly | cumulative | cumulative |
| Tenure (months) | 367 days | 367 days | 18 | 18 | twenty four | twenty four | 36 | 36 | 60 | 60 | 75 |
| Coupon (% per year) | 9.50% | N.A. | 9.65% | N.A. | 9.75% | N.A. | 10.25% | N.A. | 10.50% | N.A. | N.A. |
| Effective yield (%/year) | 9.92% | 9.75% | 10.09% | 9.77% | 10.20% | 9.77% | 10.75% | 10.18% | 11.02% | 9.61% | 11.73% |
| Amount at maturity (Rs.) | 1,000 | 1,098 | 1,000 | 1,150 | 1,000 | 1,205 | 1,000 | 1,338 | 1,000 | 1,583 | 2,000 |
Financial status of Muthoot Mercantile Limited
| Period ends | March 31, 2021 | March 31, 22 | March 31, 23 | August 31, 23 |
|---|---|---|---|---|
| assets | 420.4 | 316.2 | 606.5 | 631.6 |
| revenue | 49.4 | 67.0 | 94.7 | 46.5 |
| Profit after tax | 14.0 | 17.0 | 18.2 | 8.9 |
Muthoot Mercantile NCD December 2023 – Why invest?
- The company has consistently shown increasing profit margins. Investors should consider investing in companies with a consistent track record of growth.
- We have a long history of operation in India and boast a strong brand name and track record. We offer flexible financing schemes, quality customer service and fast response times. These positive factors can help the company grow and not only benefit investors through stock price appreciation, but also provide confidence to NCD investors and other creditors.
- High interest rate of up to 10.5%.
- The company offers safe NCDs. If the company faces a financial crisis and goes bankrupt for any reason, safe NCD investors will receive priority repayment of capital.
Also read: 10.5% ICL Merchantile NCD November 2023 issue details
Muthoot Mercantile NCD December 2023 – Risk Factors
- The company has a low credit rating of BBB/Stable from India Ratings and Research Limited.
- The “Muthoot” mark is trademarked by M. Mathews, our Chairman. Further, Thomas Muthoot, Thomas John Muthoot and Thomas George Muthoot filed an application with the Intellectual Property Appellate Board, Chennai on July 3, 2012 for removal, removal, amendment, cancellation and variation of the trademark. did. The application was then transferred to the Intellectual Property Division of the Madras High Court of Justice, where it is currently pending. Damage to a brand or its reputation can have a negative impact on a company.
- We are subject to certain restrictive covenants in our financing documents and other indebtedness, which limit our ability to operate and grow our business and may adversely affect our business.
- Access to capital also depends on your credit rating. A downgrade in the company’s credit rating would increase its borrowing costs and limit its access to capital and lending markets, thereby negatively impacting its net interest margin and business.
- Part of the branch network is concentrated in the states of Kerala and Maharashtra, and most of the revenue is derived from these states. Service interruptions in these areas could have a material adverse effect on the Company’s business.
- Its operations are capital intensive, and any disruption or restriction in its financing could have a material adverse effect on its liquidity and financial condition.
- Investing in NBFC NCD bonds is riskier due to historical defaults and delays in interest payments and capital repayments.Investors must pass Muthoot Mercantile NCD Risk Factors in RHP.
Muthoot Mercantile NCD December 2023 – Should you invest or avoid?
- Muthoot Mercantile Ltd is an NBFC that provides loans for gold, investments, health insurance, foreign exchange services, and remittances. The December 2023 NCD issue comes with attractive interest rates. The company has consistently grown its profit margins. This issue provides a secure NCD that is somewhat secure compared to a non-secure NCD.
- On the downside, the company has a low credit rating of IND/BBB Stable from India Ratings. The company derives most of its revenue from two states, posing regional risks. Investors should not forget the past defaults of NCDs and delays in payment of interest and principal by NBFC companies.
Investors should consider both the advantages and disadvantages before investing in such NCD bonds.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be contacted at suresh@myinvestmentideas.com.
