Muthoot Fincorp Limited is launching the safe and redeemable non-convertible debt officer (NCD) Tranche V from April 29th to May 13th, 2025. These NCDs offer interest up to 10% and are available in 12 series with tenure options ranging from 24 to 72 months and monthly, annual or cumulative interest payments. You need to invest Muthoot Fincorp NCD – April 2025? This review provides detailed information, key features, interest rates, risk factors, and whether you should consider your investment.
About Muthoot Fincorp Limited
Founded in 1997, Muthoot Fincorp is a non-depositor NBFC registered with the RBI. It focuses on providing personal and business loans protected by gold jewelry. As of September 30, 2024, the company has an active gold loan account of over Rs 3379 lakh, operates 3,736 branches in 25 states and employs 26,723 staff.
The promoters are Thomas John Muthoot, Thomas George Muthoot and Thomas Muthoot.
Muthoot Fincorp NCD April 2025 – Highlights of the problem
- The publication opens：April 29, 2025
- The problem ends：May 13, 2025
- type: Protected, redemptive, non-convertible corporate bonds
- Issued size: £100 cr (base), max 150 cr (oversubscription), total £250 cr
- Face value/issue price:1000 lbs per NCD
- Minimum investment:10 NCDS (£10,000)
- list:BSE
- Assignment Base: The first serve comes
- Debenture Trustee:Vardhman Tristeeship Pvt Ltd
Allocation ratio:
- System: 5%
- Non-facilities: 25%
- HNI: 25%
- Retail: 45%
Coupon Rates and Tenure Details (Series I-XII)
| series | Tenure period | frequency | coupon(%) | Effective Yield (%) | Maturity (£). |
|---|---|---|---|---|---|
| I | 24m | monthly | 9.00% | 9.38% | 1,000 |
| ii | 36m | monthly | 9.25% | 9.65% | 1,000 |
| iii | 60m | monthly | 9.45% | 9.87% | 1,000 |
| IV | 72m | monthly | 9.55% | 9.97% | 1,000 |
| v | 24m | Year | 9.40% | 9.40% | 1,000 |
| vi | 36m | Year | 9.65% | 9.64% | 1,000 |
| vii | 60m | Year | 9.90% | 9.89% | 1,000 |
| viii | 72m | Year | 10.00% | 10.00% | 1,000 |
| ix | 24m | Cumulative | Na | 9.40% | 1,196.84 |
| x | 36m | Cumulative | Na | 9.65% | 1,318.67 |
| xi | 60m | Cumulative | Na | 9.90% | 1,603.62 |
| xii | 72m | Cumulative | Na | 10.00% | 1,772.02 |
Credit rating
These NCDs are rated as low aa-/stable, indicating a timely service of financial obligations and very low credit risk.
Company finance (integrated, £in crores)
| End year | Revenue | Profit after tax | assets | Net assets |
|---|---|---|---|---|
| March 2022 | 4,355.13 | 412.55 | 28,422.34 | 3,731.16 |
| March 2023 | 5,151.33 | 646.42 | 32,134.61 | 4,257.18 |
| March 2024 | 6,584.52 | 1,047.98 | 38,704.14 | 5,796.46 |
Why should you invest?
- Attractive yield: Recent effective annual returns 10%is higher than most FDs.
- Safe equipment:Based on the company’s assets, ensuring repayment priorities.
- Strong track record:Stable profit growth and expansion in branches and operations.
- A trusted brand: Part of the established Muthot Pappachan Group.
Risk factors to consider
- Interest rate risk: Rising interest rates could affect demand and pricing for NCDs.
- NBFC-specific risks: A sector that is prone to liquidity and regulatory challenges.
- Regulation overhang: RBI inspections and future directives may affect operations.
- Business Dependencies: Reliance on the Gold Loan Segment and Capital availability.
- Credit ratings may change: Ratings may be revised based on future performance.
Please see NCD Prospectus For full risk disclosure.
Muthoot Fincorp NCD – April 2025 – Should I invest?
Muthoot Fincorp’s April 2025 NCD offers the support of the well-known NBFC with competitive returns and strong finances. However, investors should be aware of risks related to NBFCS, such as delays and defaults that have occurred in some peers in the past.
Suitable for high-risk appetite investors seeking normal or cumulative income with moderately high credit ratings. Consider adjusting your investment tenure to your financial goals.
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