India's largest gold loan company

Muthoot Finance Opens 5th Series of Non Convertible Debentures (NCD) 2013

PUBLIC ISSUE BY MUTHOOT FINANCE LIMITED, (“COMPANY” OR “ISSUER”) OF SECURED, REDEEMABLE, NON-CONVERTIBLE DEBENTURES AND UNSECURED REDEEMABLE NON-CONVERTIBLE DEBENTURES OF FACE VALUE OF ` 1,000 EACH, (“NCDs”), AGGREGATING UPTO ` 1,500 MILLION WITH AN OPTION TO RETAIN OVER-SUBSCRIPTION UPTO ` 1,500 MILLION FOR ISSUANCE OF ADDITIONAL NCDS AGGREGATING TO A TOTAL OF UPTO `3,000 MILLION.

Issue Opens on September 02, 2013

Mumbai, September 02, 2013: Muthoot Finance Limited, the largest gold financing company in India in terms of loan portfolio according to the IMaCS Industry Report, 2012 Update, will open on September 02, 2013, a public issue of secured, redeemable, non-convertible debentures and unsecured, redeemable, non-convertible debentures (“NCDs”) of face value of Rs. 1,000 each aggregating upto Rs. 150 Crores with an option to retain oversubscription upto Rs. 150 Crores, aggregating to a total of upto Rs. 300 Crores (the “Issue”).

The NCD Issue with eleven investment options and effective yield of upto 12.55% (per annum) closes on September 16, 2013, with an option for early closure as may be decided by the NCD Public Issue Committee subject to necessary approvals. The face value of each NCD is Rs. 1,000 and the minimum application is for ten NCDs (Rs. 10,000) (for all options of NCDs, namely Option I, II, III, IV, V, VI, VII, VIII, IX, X, XI either taken individually or collectively) and in multiples of one NCD thereafter.

The NCDs offered through the Prospectus are proposed to be listed on BSE Limited.

The NCDs proposed to be issued under this Issue have been rated ‘CRISIL AA-/Negative’ by CRISIL and ‘[ICRA] AA- /Negative’ by ICRA.

There are ten investment options for secured NCDs:

Option I: The maturity date is 24 months from the deemed date of allotment and the interest is payable monthly. The coupon rate and effective yield is 11.50% p.a.

Option II: The maturity date is 36 months from the deemed date of allotment and the interest is payable monthly. The coupon rate and effective yield is 12.00% p.a.

Option III: The maturity date is 60 months from the deemed date of allotment and the interest is payable monthly. The coupon rate and effective yield is 11.50 % p.a.

Option IV: The maturity date is 24 months from the deemed date of allotment and the interest is payable  annually. The coupon rate and effective yield is 12.00% p.a

Option V: The maturity date is 36 months from the deemed date of allotment and the interest is payable annually. The coupon rate and effective yield is 12.25% p.a.

Option VI: The maturity date is 60 months from the deemed date of allotment and the interest is payable  annually. The coupon rate and effective yield is 12% p.a.

Option VII: The maturity date is 400days from the deemed date of allotment and the effective yield is 11% p.a.

Option VIII: The maturity date is 24 months from the deemed date of allotment and the effective yield is 12% p.a.

Option IX: The maturity date is 36 months from the deemed date of allotment and the effective yield is 12.55% p.a.

Option X: The maturity date is 60 months from the deemed date of allotment and effective yield is 12% p.a.

The investment options for unsecured NCDs:

Option XI: The maturity date is 72 months from the deemed date of allotment and effective yield is 12.25% p.a.

The funds raised through this Issue will be utilised by the Company for various financing activities including lending and investments, to repay existing liabilities or loans and towards business operations including for capital expenditure, working capital requirement and other general corporate purposes, after meeting the expenditures of and related to the Issue and subject to applicable statutory/regulatory requirements.

The Company 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 June 30, 2013, the Company has branch network of 4163 branches. The Company’s Gold Loan portfolio as of March 31, 2013 comprised approximately 6.5 million loan accounts. As of June 30, 2013, it employed 24945 persons in its operations.

The Lead Manager to the Issue is ICICI Securities Limited.

Disclaimer: Muthoot Finance Limited, is proposing, subject to market conditions and other considerations, to make a public issue of securities and has filed a Draft Prospectus with the Securities and Exchange Board of India (“SEBI”), BSE Limited and the Prospectus with the Registrar of Companies, Kerala and Lakshadweep (“RoC”), SEBI, BSE Limited.  The Draft Prospectus and Prospectus are available on the website of SEBI at www.sebi.gov.in, BSE Limited at www.bseindia.com, the Company at www.muthootfinance.com and the respective website of the Lead Manager, at www.icicisecurities.com related to the Issue.  All investors proposing to participate in the Issue should invest only on the basis of the information contained in the Prospectus (including the risk factors therein) dated August 28, 2013, filed with the RoC.

 
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