Muthoot Finance Limited NCD Sept. 2012

Muthoot Finance Limited, incorporated as a private limited on March 14, 1997 as “The Muthoot Finance Private Limited” and later converted into a public limited company with the name “Muthoot Finance Limited” on November 18, 2008.  MFL,  a “Systemically Important Non-deposit taking NBFC” having headquarter in the south Indian state of Kerala.
MFL provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.
As of March 31, 2012 MFL’s Gold Loan portfolio comprised approximately six million loan accounts in India that were serviced through 3,678 branches across 20 states, the national capital territory of Delhi and four union territories in India.
The capital adequacy ratio maintained is at 18.29% as of March 31, 2012, above minimum levels of 15% prescribed by the RBI and the net worth stood at Rs. 2925.73 crores as on March 31, 2012
The company is coming out with an NCD for collection of funds aggregating upto Rs. 250 Crores with an option to retain over-subscription upto Rs. 250 Crores for issuance of additional NCDs, aggregating to a total of upto Rs. 500 Crores.

Download Application Form

(List of Centres for Depositing application)

(Downloaded application must be sent to us or deposited at the centres mentioned above in the list before 3.30 PM)

For help, mail us at: aarkay@moneyvriksh.com

ISSUE SALIENT FEATURES:

• Yield returns range from 11.50% to 12.40% depending on the series applied for.
• Credit Ratings of “CRISIL AA-/Stable” by CRISIL and “ICRA  AA-/Stable” by ICRA .
• NCDs are allotted on first cum first serve basis.
• NCDs are allotted in demat mode only.
• NCDs have five series of options: Interest on the Series I, II, III & IV shall be payable on a periodic basis, and there shall be no interest payable on the Series V NCDs. However, Series V NCDs shall be redeemed at Rs 2,000 per NCD at the end of 72 months from the Deemed Date of Allotment.

ISSUE TIME TABLE:

Issue Programme*	The Issue shall be open from September 17, 2012 to October 5, 2012 with an option to close earlier and/or extend upto a period as may be determined by the Board or the NCD Public Issue Committee, subject to necessary approvals. Date extended till October 22, 2012
Issue Size	Public issue of NCDs aggregating upto Rs. 250 Crores with an option to retain over-subscription upto Rs. 250 Crores for issuance of additional NCDs, aggregating to a total of upto Rs. 500 Crores.
Deemed Date of Allotment	The Deemed Date of Allotment shall be the date as decided by the Board, or the NCD Public Issue Committee, and as mentioned on the Allotment Advice.
Stock Exchanges proposed for listing of the NCDs	BSE and NSE
Issuance and Trading	The NCDs will be issued in both physical and dematerialised form. However, the NCDs will be traded compulsorily in dematerialised form. However, NCDs under Option V will be compulsorily allotted in dematerialised form.
Credit Rating	“ICRA AA-/stable” by ICRA &  “CRISIL AA-/Stable”  by CRISIL
Trustee	IDBI Trusteeship Services Ltd.
Depositories	NSDL and CDSL
Interest on Application Money	@ 11.50 % per annum on application money on the amount allotted, subject to deduction of income tax under the provisions of the IT Act, as applicable, to any Applicants (except for ASBA Applicants) to whom NCDs are Allotted pursuant to the Issue from the
Interest on Application Money which is liable to be refunded	@ 6% per annum on application money which is liable to be refunded to the Applicants in accordance with the provisions of the SEBI Debt Regulations and/or the Companies Act, or other applicable statutory and/or regulatory requirements, subject to deductio

* The Issue shall remain open for subscription from 10:00 a.m. till 5.00 p.m. (Indian Standard Time) for the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board or the NCD Public Issue Committee, subject to necessary approvals. In the event of an early closure or extension of the Issue, the Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in a reputed daily national newspaper on or before such earlier or extended date of Issue closure.
INVESTMENT SERIES:

Options	i	ii	iii	iv	v
Frequency of interest payment	Annual	Annual	Monthly	Annual	N.A
Minimum Application	Rs.10,000 (10 NCDs) (for all options of NCDs, namely Options I, Option II, Option III, Option IV and OptionV either taken individually or collectively)
In multiples of	Rs. 1,000 (One NCD)	Rs. 1,000 (One NCD)	Rs. 1,000 (One NCD)	Rs. 1,000 (One NCD)	Rs. 1,000 (One NCD)
Face value of NCDs (Rs / NCD)	Rs. 1,000	Rs. 1,000	Rs. 1,000	Rs. 1,000	Rs. 1,000
Issue Price (Rs / NCD)	Rs. 1,000	Rs. 1,000	Rs. 1,000	Rs. 1,000	Rs. 1,000
Coupon Rate (%) for NCD Holders in Category I, Category II and Category III	11.50%	11.75%	11.75%	12.00%	N.A.
Effective yield (per annum) for NCD Holders in Category I, Category II and Category III	11.50%	11.75%	12.40%	12.00%	12.25%
Tenor	24 months	36 months	60 months	60 months	72 months
Redemption date	24 months from the Deemed Date of Allotment.	36 months from the Deemed Date of Allotment.	60 months from the Deemed Date of Allotment.	60 months from the Deemed Date of Allotment.	72 months from the Deemed Date of Allotment.

INVESTOR CATEGORIES:

Category I Institutional Investors	Category II Non Institutional Investors	Category III Individual Investors
> Public financial institutions, statutory corporations, commercial banks, co-operative banks and Regional Rural Banks, which are authorised to invest in the NCDs; > Provident funds, Pension funds, superannuation funds and gratuity funds, which are authorised to invest in the NCDs; > Venture capital funds registered with SEBI; > Insurance companies registered with the IRDA; > State industrial development corporations; > Insurance funds set up and managed by the army, navy, or air force of the Union of India; > Insurance funds set up and managed by the Department of Posts, the Union of India; > National Investment Fund; and > Mutual Funds.	> Companies; bodies corporate and societies registered under the applicable laws in India and authorised to invest in the NCDs; > Public/private charitable/religious trusts which are authorised to invest in the NCDs; > Scientific and/or industrial research organisations, which are authorised to invest in the NCDs;   > Partnership firms in the name of the partners; > Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008; and > Resident Indian individuals and Hindu Undivided Families through the Karta applying for NCDs aggregating to a value exceeding Rs. 500,000, across all series of NCDs, (Option I and/ or Option II and/ or Option III and/or Option IV and/ or Option V)	>Resident Indian individuals and Hindu Undivided Families through the Karta applying for NCDs aggregating to a value not more than Rs. 500,000, across all series of NCDs (Option I and/or Option II and/or Option III and/or Option IV and/ or Option V)

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Tags: 2012, Muthoot Finance Ltd, NCD

Category: Blog, Fixed Deposit