Muthoottu Mini Financiers Limited is a company that is engaged in the business of finance and lending. The Company is an RBI registered Non-Banking Financial Company that majorly operates in the gold loan industry. The Company carries out the lending of the money in exchange for the gold in the form of jewelry pledged by the customers. Let’s delve deep into understanding some key elements about the Muthootu Mini Financiers NCD details.
Muthoottu Mini Financiers Limited also offers gold loans, microfinance, fixed deposits, money-based transfer service schemes, online gold loans, and insurance and banking solutions. The Company has a great market presence in the Southern part of the country with sheer dominance in Kerala, Andhra Pradesh, Tamil Nadu, Telangana, and Karnataka. Along with these states, it also carries out its business operation in Haryana, Gujarat, Maharashtra, Delhi, and Goa.
Muthoottu Mini Financiers Limited is a Flag Ship Company part of the M Mathew Muthoottu Group. The Company holds 4,22,073 Gold Loan accounts under its operation That has been managed through a network of 804 branches. The Company’s majority of the branches, which calculates for 61% of the Company’s branches, around 490 branches, are in rural and semi-urban areas of Southern India, where the gold loans are very popular.
The total gold loans of the Company account for a sum of Rs. 2,033.66 crores, which is 97.41 percent of their total loans and advances as per the Company’s balance sheet. The Company also stated that the yield on the gold loan assets of the Company had been valued at a return of 19.39 %. In addition to the gold loan business of the Company, it also offers microfinance loans, money transfer, depository participant, broking services, insurance, PAN card related, and travel agency services.
OBJECTS OF THE ISSUE:
The Company stated that the funds been raised from the proceeds of the NCD would be utilized to:
- For onward lending.
- Financing along with the repayment and the prepayment of the interest and the principal of the outstanding dues of the Company.
- General Corporate Purposes.
MUTHOOTTU MINI FINANCIERS NCD 2022 DETAIL:
After approving the NCD offer, the Company’s board has been coming up with their 17th debt-based NCD offer since February 2014. The Company’s last debt-based NCD offer was in December 2021. The Company also stated that the funds raised via the NCD offer would be to part-finance the needs for carrying out the onward lending, repayment of the Company’s outstanding loans, and financing its business. The Company stated that it would grant around 75% of the net issue collections from the NCD offer for the same.
The Company will also use the rest 25% for general corporate purposes. The NCD offer of the Company is a Rated, Secured, Transferable, and Redeemable Non-Convertible Debentures (NCDs) of price been fixed at Rs. 1000 each. The Company aims to raise around Rs. 125.00 crores via this NCD offer. The NCD offer of the Company also holds a greenshoe option to retain oversubscription to the tune of Rs. 125.00 crores raised within the offer. As a result, the overall size of this NCD issue will be Rs. 250.00 crores. The minimum application made within this NCD offer is for 10 NCDs and in multiples of 1 NCD. Post allotment of the NCD, the shares will be listed on BSE.
This debt offering consists of 480 days, 24, 36, 48, and 66 months with offered coupon rates that range from 8.00% to 9.50% within the Monthly, Annually, and Cumulatively payment of the interests. The Company also stated that there is no option of Put and Call buying and writing for this debt-based NCD issue. Also, the Company stated that no portion of the NCD offer has any reservation. Click on this link to get details about discount stock brokers.
| Issue Open | Apr 20, 2022 to May 17, 2022 |
| Security Name | Muthoottu Mini Financiers Limited |
| Security Type | Secured, Redeemable Non-Convertible Debentures |
| Base Issue Size | Rs. 125.00 Crores |
| Shelf Issue Size | Rs. 125.00 Crores |
| Issue Price | Rs. 1000 per Non-Convertible Debentures |
| Face Value | Rs. 1000 each Non-Convertible Debentures |
| Minimum Lot size of NCD | 10 NCD that corresponds to Rs.10,000 |
| Market Lot of the NCD | 1 NCD |
| Listing At | BSE |
| Credit Rating | CARE BBB+ by CARE Ratings Limited |
| Tenor of the NCD | 480 Days along with 24, 36, 48 and 66 Months |
| Series | Series I to VI |
| Payment Frequency of the NCD | Monthly and Cumulative |
| Basis of Allotment of the NCD | First Come, First Serve Basis |
Muthoottu Mini Financiers NCD 2022 – Options and Coupon Rates
| Options | Tenure | Frequency of Interest Payment | Coupon (% per annum) for NCD Holders in Category I, II, III & Iv | Redemption Amount (₹ /NCD) on Maturity for NCD Holders in Category I, II, III & IV (%) | Effective Yield for NCD Holders in Category I, II, III & IV (%) | Put and Call Option |
| I | 480 days | Monthly | 8.00% | Rs. 1,000 | 8.30% | NA |
| II | 24 months | Monthly | 8.50% | Rs. 1,000 | 8.84% | NA |
| III | 24 months | Cumulative | NA | Rs. 1,186 | 8.90% | NA |
| IV | 36 months | Cumulative | NA | Rs. 1,304 | 9.25% | NA |
| V | 48 months | Monthly | 9.50% | Rs. 1,000 | 9.92% | NA |
| VI | 66 months | Cumulative | NA | Rs. 1689 | 10.00% | NA |
MUTHOOTTU MINI FINANCIERS NCD ALLOCATION RATIO:
| Category of the Allocation | NCD Allocation | NCD’s Reserved |
| Institutional Investors | 10% | 125,000 |
| Non-Institutional Investors | 40% | 500,000 |
| High Net worth Investors | 0% | 0 |
| Retail Investors | 50% | 625,000 |
| Total NCD’s | 100 % | 1,250,000 |
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COMPANY FINANCIALS:
| Particulars | For the year ending with the amount as in Rs in Lakhs | ||||
| 31 March 21 | 31 March 20 | ||||
| Total Assets | 2,52,348.05 | 2,02,564.73 | |||
| Total Revenue | 36,825.38 | 31,315.27 | |||
| Profit After Tax | 3,191.14 | 3,354.18 |
COMPANY PROMOTERS:
The promoters of the Company are as follows:
- Nizzy Mathew
- Mathew Muthoottu
MUTHOOTTU MINI FINANCIERS NCD RATING:
The debt-based NCD offer of the Company has been proposed to be issued under the Issue as CARE BBB+. The CARE Rating Agency has rated the NCD offer with a commentary of a Stable Outlook. The rating agency also stated a moderate degree of safety with the NCD Debt offer. Though it is the 17th debt-based NCD offer by the Company since February 2014, this offer’s coupon rates are less than the previous NCD offers. However, the Company is issuing secured NCDs, which are safe compared to unsecured NCDs. But in light of the coupon rate, only the high-risk investors should consider applying for this offer, while the Moderate to low-risk investors shall avoid this NCD offer. It is on account of the investor’s issue regarding timely servicing of the financial obligations and the moderate risk associated with the credit.
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COMPANY CONTACT INFORMATION:
Muthoottu Mini Financiers Limited
65/623-K,
Muthoottu Royal Towers,
Kaloor, Kochi, Kerala – 682 017
Phone: +91 484 291 2100
Email: cs@minimuthoottu.com
Website: https://www.muthoottumini.com/
MUTHOOTTU MINI FINANCIERS NCD APRIL 2022 REGISTRAR:
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S. Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: mmfl2022.ncd1@linkintime.co.in
Website: https://linkintime.co.in/
MUTHOOTTU MINI FINANCIERS NCD APRIL 2022 LEAD MANAGER(S):
