If you are looking for bond options beyond traditional bank FDs, non-convertible corporate bonds (NCDs) from NBFCS could be an alternative. Muthottu Mini Financiers Limited devised the NCD issue for April 2025, offering a return of up to 11.02%. Should I invest in the April 2025 issue of Musotu Mini Finance NCD? Find out more about the problem, interest rates, pros and cons, and whether these are worth investing.
About Muthottu Mini Financiers Limited
Muthottu Mini Financiers are non-deposits that collect NBFCs classified under the Middle Class (NBFC-ML) primarily involved in gold loans. You will lend money for household gold ornaments pledged in various states, such as Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Haryana, Maharashtra, Gujarat, Delhi, Uttar Pradesh, Goa, Paduchery and more.
The company also operates a microfinance segment that offers unsecured loans to women under a joint responsibility group structure for business needs.
As of September 30, 2024, there is a strong footprint with 920 branches and a workforce of 4,672 employees.
Muthottu Mini Financiers NCD April 2025 – Details will be published
- Start date for NCD issuance：April 23, 2025
- An end date will be issued: May 7, 2025
- Security type: Protected, redemptive, non-convertible corporate bonds (secured NCDs)
- Base problem size:100 crore
- Green Shoe Options:100 crore
- Total problem size:200 crore
- Face value/issue price:1,000 lbs per NCD
- Minimum investment:10 NCDS (£10,000)
- Market lot:1 NCD
- list:BSE
- Assignment Base: Please come first
- Debenture Trustee:Mitcon Credentia Tristeeship Services Ltd
Credit rating
NCD is rated Icra a [Stable]demonstrates proper security for timely service of financial obligations.
NCD Interest Rate/Coupon Fees
| series | tenor | Payment Frequency | Coupon (%pa) | Effective Yield (%PA) | Maturity (£) |
|---|---|---|---|---|---|
| I | 18 months | Cumulative | Na | 9.26% | 1,142 |
| ii | 24 months | monthly | 9.50% | 9.92% | 1,000 |
| iii | 36 months | monthly | 10.00% | 10.47% | 1,000 |
| IV | 48 months | monthly | 10.25% | 10.75% | 1,000 |
| v | 60 months | monthly | 10.50% | 11.02% | 1,000 |
| vi | 60 months | Year | 10.75% | 10.75% | 1,000 |
NCD allocation ratio
- Institutional – 20%
- Non-facilities – 40%
- Retail – 40%
Object in question
The company intends to use the net revenue from this NCD issue to:
- Subsequent loans and funding
- Repayment/advance payment of principal and profits on existing borrowings
- General business purposes
Why invest in Musotou Mini Finance NCD in April 2025?
- Attractive interest rates up to 11.02% enable annual yield
- Protected NCDs provide a more secure cushion than unsecured ones
- Multiple duties and interest payment options – monthly, annually, cumulative
- Rated as “A” by ICRA and shows proper safety
- Come first, first serve base – early applicants may have a better chance of assignment
Why not invest?
- The “A” credit rating is considered lower compared to NCDs rated “AA” or “AAA”
- Gold Loan NBFC is exposed to price fluctuations and market demand for gold
- The microfinance segment can pose risks from recession or delayed repayments
- Liquidity can be a concern – premature exits are only possible through exchange sales, subject to availability by buyers
- Better valuation alternatives may be available from other NBFCs or corporate bonds
How do I apply to Muthottu Mini Financiers NCD in April 2025?
You can apply through these NCDs.
- Please select your Demat account directly on the company website, such as Zerodha, Upstox, etc.
- Online platform for stock brokers such as icicidirect.
- Physical applications through designated collection centers
- Net Banking ASBA Facilities (for eligible investors)
These are forced in the form of demarts, so make sure you have a demart account to receive the assignment.
Should I invest in Musotu Mini Finance NCD in April 2025?
Muthottu Mini Financiers NCDS offers higher interest rates compared to bank FDs and AAA rated bonds, making it attractive for investors looking for better fixed income options. The NCD is essentially protected and comes with multiple investment inventory and payment options.
However, it should be noted that the credit rating is “A.” This indicates moderate risk. Those with a high risk appetite and looking for a normal income may consider investing part of their portfolio in these NCDs. Conservative investors or those seeking capital security may prefer AAA rating options or government-supported measures.
April 2025, FAQ for Mututo Mini Finals NCD
- Is Muthottu Mini Financiers NCD safely invested? NCDs are protected and evaluated [Stable] By salmon roe. However, this rating is lower than the top rating, so it requires moderate risk.
- What is the minimum investment amount? The minimum application size is 10 ncds, or 10,000 pounds.
- What are the available interest payment options? You can choose from cumulative, monthly, and annual interest options based on the series.
- How is the allocation done? Allocation is made on a first come first served basis. Early applicants are more likely to be assigned.
- Can I finish from these NCDs before maturity? Yes, these NCDs are listed on BSE. If you have a buyer, you can sell it in exchange if it is subject to market conditions.
- Who is the promoter for the company? The company is advertised by Nizzy Mathew and Mathew Muthottu.
- Where can I track assignments and list updates? Once the issue is closed, assignment and list details will be available on the BSE website and the registrar portal.
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