Muthoot Finance – One of the largest Gold loan company which offers loans against gold jewellery for short -medium term liquidity requirements – has come up with NCD issue in May 2014 which will open on May 26, 2014.
Muthoot Finance intends to collect Rs.500 crore through this issue.
Details of Muthoot Finance NCD Issue March – 2014 are as follows:
Imp Dates:
- Issue open date:May 26, 2014
- Issue Close Date:June 26, 2014.
Interest Rates and Options:Following options are available for investors.
Below mentioned interest rates are for Category II – non-institutional investors and Categoty III – Individual Investors.
| Series | Interest rate for Category II & III investors | Tenure | Interest payment Frequency |
| I | 11.00% | 24 Months | Monthly |
| II | 11.50% | 36 Months | Monthly |
| III | 11.00% | 60 Months | Monthly |
| IV | 11.50% | 24 Months | Annually |
| V | 11.75% | 36 Months | Annually |
| VI | 11.50% | 60 Months | Annually |
| VII | 10.50% | 400 Days | Cumulative |
| VIII | 11.50% | 24 Months | Cumulative |
| IX | 11.75% | 36 Months | Cumulative |
| X | 11.50% | 60 Months | Cumulative |
| XI | 11.70% | 75 Months | Cumulative |
with last option series XI ,investors money will get exactly doubled.
Security : Among above options Series I to X are of secured nature means investors of these series would have First pari passu charge of the identified immovable property,Current assets and future receivables of company .
while Series XI is of unsecured nature means investors would have subordinated claims.
Holding :
Investors can hold Series I to VI in either demat or physical mode but series VII to XI which are of cumulative mode can only be held in Demat form.
Min Investment amount : Rs.10,000 .
Credit Rating : AA- by CRISIL and ICRA.
should you invest or not:
Muthoot finance profits after Tax – PAT reported:
| Year ended | Profit in Crores |
| March 2009 | 97.70 Crores |
| March 2010 | 227.16 Crores |
| March 2011 | 494.21 Crores |
| March 2012 | 892.02 Crores |
| March 2013 | 1004.24 Crores |
Profit Reported for Last 03 quarters of current financial year:
| Quarter ended | Profit after Tax (PAT)Reported |
| June 2013 | 193.89 Crores |
| Sept 2013 | 210.99 Crores |
| Dec 2013 | 194.25 Crores |
Company have posted good profits.RBI ..few months back raised Gold To Loan ratio to 75% from 60% which have helped Gold loan companies to disburse more loan. Muthoot finance have also ventured into white label ATM business after recent RBI nod and intended to set 9000 white Label ATMs across the country..
Investment decision should be individually customized and one can invest a small part after agreeing with the risks associated with the Gold prices and Gold loan companies.
