Muthoottu Mini Financiers' NCD Issue Now Open
The Effective Yield Per Annum Under Various Options For The NCDs Range From 8.84% To 10.20%
MUMBAI and KOCHI, India, Dec. 3, 2021 /PRNewswire/ —
- Issue of Secured NCDs of face value of Rs. 1,000 each
- The NCD Issue includes a Base Issue Size of Rs.100 crores with an option to retain over-subscription up to Rs 100 crores
- Face value and Issue price Rs 1,000 per NCD
- NCD Issue rated as ‘CARE BBB+’/Stable (Triple B; Outlook: Stable) by CARE Ratings Limited
- NCD Issue opened on December 1, 2021 and is scheduled to be closed on December 28, 2021
- The NCDs are proposed to be listed on BSE Limited
Incorporated in the year 1998, Muthoottu Mini Financiers Limited (“Muthoottu Mini”/ ‘MMFL’), a non-deposit taking systemically important NBFC involved in the gold loan sector lending money against the pledge of household gold jewelry, has announced the issue of secured, redeemable, non-convertible debentures of the face value of Rs. 1,000 each at par, aggregating up to Rs.200 Crores, is now open and scheduled to be closed on December 28, 2021.
The Issue has a base issue size of Rs. 100 crores with an option to retain over-subscription up to Rs 100 crores. The NCDs are proposed to be listed on BSE as the Designated Stock Exchange for the Issue. The NCDs have been rated ‘CARE BBB+’: Stable (‘Triple B Plus; Outlook: Stable’) by CARE Ratings Limited (“CARE Ratings”).
As on 30th September 2021, MMFL had 3,95,175 gold loan accounts, predominately from rural and semi urban areas, aggregating to Rs. 2,033.66 crores which accounted for 97.41% of its total loans and advances. The yield on its gold loan assets is at 19.39% as at September 30, 2021.
In addition to its gold loan business, it offers micro finance loan, depository participant, money transfer, insurance, broking services, PAN card related and travel agency services.
The Company, erstwhile part of a family business enterprise that was founded by Ninan Mathai Muthoottu in 1887, is now spearheaded by Nizzy Mathew, Chairman & Whole-time Director and Mathew Muthoottu, Managing Director.
Vivro Financial Services Private Limited is the sole Lead Manager to the Issue, Mitcon Trusteeship Services Limited is the Debenture Trustee of the Issue and Link Intime India Private Limited is the Registrar to the Issue.
Net proceeds of the Issue will be utilized for the purpose of onward lending, financing, and for repayment/prepayment of principal and interest on borrowings of the Company (at least 75%) and the rest (up to 25%) for general corporate purposes.
The terms of each series of Secured NCDs, offered under Options I to VI Issue are set out below:
|
Tenure |
480 Days |
24 months |
24 months |
36 months |
48 months |
66 months |
|
Nature |
Secured |
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|
Options |
I |
II |
III |
IV |
V |
VI |
|
Frequency of Interest Payment |
Monthly |
Monthly |
Cumulative |
Cumulative |
Monthly |
Cumulative |
|
Minimum Application |
10 NCDs (Rs 10,000) (across all options of NCDs) |
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|
In multiples, of |
1 NCD after the minimum application |
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|
Face Value of NCDs (Rs/NCD) |
Rs 1,000 |
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|
Issue Price (Rs /NCD) |
Rs 1,000 |
|||||
|
Mode of Interest Payment/ |
Through various options available |
|||||
|
Coupon (%) per annum |
8.50% |
8.75% |
NA |
NA |
9.75% |
NA |
|
Effective Yield (%) (per annum) |
8.84% |
9.11% |
9.09% |
9.50% |
10.20% |
10.13% |
|
Redemption Amount (Rs/NCD) |
1,000 |
1,000 |
1,190 |
1,313 |
1,000 |
1,700 |
|
Coupon Type |
Fixed |
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|
Put and Call Option |
Not Applicable |
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|
Deemed date of Allotment |
The date on which the Board or a duly authorised committee approves the Allotment of |
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About Muthoottu Mini Financiers:
Muthoottu Mini Financiers Limited is an RBI registered non-deposit taking systemically important NBFC in the gold loan sector, lending money against the pledge of household gold jewellery for over 2 decades. As on September 30, 2021, the Company had a network of 809 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Haryana, Maharashtra, Gujarat, Delhi and Goa and the union territory of Puducherry and employed 3,205 persons in its business operations.
