Muthoot Fincorp Secured NCD Bonds Tranche II will open for recruitment on October 13, 2023. Muthoot Fincorp Limited is a leading NBFC company that has emerged as a prominent gold loan company in India. We offer interest rates of up to 9.44%. These NCDs are issued in 10 different series and have a validity period of 24 to 96 months. Interest is paid monthly, annually, or cumulatively, depending on the option you choose. Should you invest in Muthoot Fincorp NCD October 2023 issue series? 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, 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;
As of March 31, 2023, the Company’s gold loan portfolio consisted of approximately 31.4 million loan accounts. As of March 31, 2023, the company has 3,619 branches across 24 states, including the Union Territory of Andaman and Nicobar Islands and the National Capital Territory of Delhi, and employs 18,509 people, including 138 contract professionals. The company employs .
Muthoot Fincorp NCD – October 2023 Issue Details
| Subscription start date | October 13, 2023 |
| Subscription end date | October 27, 2023 |
| 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) | 150 million rupees |
| Total publication size | 225 million rupees |
| Issue price | 1,000 rupees per deposit |
| face value | 1,000 rupees per deposit |
| series | from me to x |
| minimum lot size | 10 bonds and then 1 bond |
| tenure | 24-96 months |
| Interest payment frequency | Monthly, annual, cumulative |
| Listed | Within 6 business days for BSE |
| lead manager | SMC Capitals Co., Ltd. |
| bond trustee | VALDMAN TRUSTEESHIP PRIVATE LIMITED. |
NRIs are not eligible for this NCD subscription.
Muthoot Fincorp NCD October 2023 Prospectus Link
What is Muthoot Fincorp NCD interest rate?
| series | I | II | Ⅲ | Ⅳ | V | VI | VII | VIII | IX | X |
|---|---|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | monthly | monthly | yearly | yearly | yearly | cumulative | cumulative | cumulative | cumulative |
| Period of employment (months) | twenty four | 36 | 60 | twenty four | 36 | 60 | twenty four | 36 | 60 | 96 |
| Coupon (% per year) | 8.65% | 8.90% | 9.05% | 9.00% | 9.27% | 9.44% | N.A. | N.A. | N.A. | N.A. |
| Effective yield (%/year) | 8.99% | 9.26% | 9.42% | 8.99% | 9.26% | 9.43% | 8.99% | 9.26% | 9.43% | 9.05% |
| Amount at maturity (Rs.) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,188 | 1,305 | 1,570 | 2,001 |
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. Masu.
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
Why invest in Muthoot Fincorp NCD?
1) These NCDs offer high interest rates ranging from 8.65% to 9.44% with yields ranging from 8.99% to 9.43%.
2) These are secure NCDs. If a 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.
3) The company has been making stable profits for the past few years. This indicates that this company has the ability to consistently pay interest to his NCD holders or payments to creditors.
Interested in investing in Muthoot Fincorp NCD?
The risk factors for investing in these non-convertible bonds include:
1) We are being inspected by the RBI and any adverse action may affect our business and operations.
2) The Company’s operations require significant amounts of capital, and any disruption to the source of funds may affect the Company’s operations.
3) A company’s financial performance is particularly sensitive to interest rate risk.
4) See prospectus for complete risk factors.
Should you invest in Muthoot Fincorp NCD October 2023 issue?
Muthoot Fincorp offers secure NCDs in October 2023 issue. These NCDs offer high interest rates of up to 9.44%. 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. Two typical examples – DHFL defaulted on NCD payments early and SREI delayed payment of NCD capital and interest.
High-risk investors can invest in these NCD bonds after understanding all these risk factors.
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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 reached at suresh@myinvestmentideas.com.
