Muthoot Fincorp Secured NCD Bonds First place September 2023. Muthoot Fincorp Limited is a leading NBFC company that has emerged as a prominent financial lender in India. Offers interest rates up to 9.44%. These NCDs are issued in 10 different series with validity periods ranging from 24 to 96 months. Interest is paid monthly, annually, or cumulatively, depending on the option you choose. Should You Invest in Muthoot Fincorp NCD September 2023? What are the risk factors to consider before investing in such high-risk NCDs?
Also read: KLM Axiva Finvest NCD Bonds for August 2023 Yield 11% – Should You Invest?
About Muthoot Fincorp Limited
These are non-deposit systemically important NBFCs registered with the RBI.
The company is one of the prominent financial lenders in the Indian market. Personal and business loans secured by gold jewelry and ornaments that we offer are intended for individuals who are unprepared for formal credit, who are unable to obtain credit in a timely manner, or where credit is not available at all. It is designed to serve the business and personal purposes of individuals who cannot. unexpected or other short-term liquidity requirements;
The Company’s Gold Loan Portfolio as of March 31, 2023 consists of approximately 31.4 million loan accounts. As of March 31, 2023, the company operates 3,619 branches across 24 states, including the Union Territory of Andaman and Nicobar Islands and the Delhi metropolitan area, and employs 18,509 people, including 138 contract professionals. employs employees.
Muthoot Fincorp NCD – September 2023 Issue Details
| Subscription start date | September 1, 23 |
| subscription end date | September 14, 23 |
| Issued security name | Muthoot Fincorp Limited |
| Security type | Safe, Redeemable and Non-Redeemable NCDs |
| issue size (base) | 100 million rupees |
| Publish size (option to keep beyond subscription) | 300 million rupees |
| total issue size | 400 million rupees |
| issue price | 1,000 rupees per security deposit |
| face value | 1,000 rupees per security deposit |
| series | from me to X |
| Minimum lot size | 10 bonds and then 1 bond |
| tenure | 24-96 months |
| Interest payment frequency | Monthly, Yearly, Cumulative |
| listing | Within 6 business days for BSE |
| chief manager | SMC Capitals Co., Ltd. |
| bond trustee | Waldmann Trusteeship Private Limited |
NRI cannot be applied to this NCD subscription.
Muthoot Fincorp NCD August/September 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 | a year | a year | a year | Cumulative | Cumulative | Cumulative | Cumulative |
| Tenure (months) | twenty four | 36 | 60 | twenty four | 36 | 60 | twenty four | 36 | 60 | 96 |
| Coupon (annual %) | 8.65% | 8.90% | 9.05% | 9.00% | 9.27% | 9.44% | NAMore | NAMore | NAMore | NAMore |
| Effective yield (%/year) | 8.99% | 9.26% | 9.43% | 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 Rating?
These secured NCDs are rated AA-/Stable by CRISIL, indicating that products with this rating offer a high degree of security with respect to the timely repayment of financial obligations and are considered to have very low credit risk. Masu.
What about company profits?
Consolidated profit is as follows.
- Year ended March 2019 – 372.6 million
- Year ended March 2020 – ¥257.9 million
- Year ending March 2021 – ¥397.2 billion
- Year ending March 2022 – JPY 41.255 billion
- Year ending March 2023 – ¥64.642 billion
Why invest in Muthoot Fincorp NCD?
- These NCDs offer high interest rates ranging from 8.65% to 9.44% with yields of 8.99% to 9.43%.
- These are secure NCDs. In the event that the company is closed or in trouble for any reason, NCD investors will 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 profitable for several years. This demonstrates the company’s 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 debentures are:
- Designated commercial and clearing banks have been instructed not to open and maintain checking accounts for customers who have drawn credit facilities in the form of Cash Credit (CC)/Overdraft (OD) from the banking system. Implementation of the foregoing policy without providing alternative mechanisms for making cash withdrawals and deposits with financial institutions that do business with the proposed commercial and clearing banks could adversely affect our business, results of operations and financial condition. may give
- We are subject to RBI inspection and any adverse action may affect our business and operations.
- Our business requires significant amounts of capital, and any disruption to our funding sources can affect our business.
- A company’s financial performance is particularly susceptible to interest rate risk.
- See prospectus for full risk factors.
Also read: India’s Top Government Savings Schemes
Should you invest in Muthoot Fincorp NCD September 2023?
Muthoot Fincorp Offers Secure NCDs in September 2023 Issue. These NCDs offer high interest rates up to 9.44%. These NCDs have a good credit rating of AA-/Stable by CRISIL.
On the other hand, you should understand the risks involved in investing in NCD bonds of NBFC companies. Two typical examples – DHFL has previously defaulted on his NCD payments and SREI has delayed on his NCD capital and interest payments.
High-risk investors can invest in these NCD bonds with an understanding of all these risk factors.
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Suresh KP is the founder of Myinvestmentideas. He is his 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.
