Details Of Muthoot Finance NCD Issue Sept-2012 –

Muthoot Finance – One of the leading Gold loan company started its operation in 1997.

Muthoot Finance has come up with a Secured issue of non-convertible debentures of size 250/- crore with option to retain the over subscription of same amount.

Investors can apply in demat or physical mode.

Important dates –

• Issue open date -Sept 17, 2012.
• Issue close date -Oct 05, 2012.

Interest Rate Details –

Series	I	II	III	IV	V
Tenure(Months)	24	36	60	60	72
Interest Payout Frequency	Annual	Annual	Monthly	Annual	Cumulative
Interest Rates %	11.50	11.75	11.75	12	***

*** Redemption amount Rs.2000/- against face value of Rs.1000/- with interest rate of 12.25%.

• Credit rating – AA- from ICRA / CARE.Stable rating.
• Min Application : Rs.10000/-. [10 NCDs].

Profit History of Muthoot Finance –

Year Ended on	Profit After Tax in Crores
March 31, 2008	Rs.63.065
March 31, 2009	Rs.97.870
March 31, 2010	Rs.228.518
March 31, 2011	Rs.494.176
March 31, 2012	Rs.892.024

What are the important risk factors –

• Concentrated on Gold loans.Retail participation is high.
• Growing competition –  Growing competition, especially from banks.
• Proposed restrictions by RBI on Gold loan business.