Muthoot FinCorp NCD Launches with Yields up to 9.40%
Register Now for Loan From Home!

  • Muthoot FinCorp NCD Launches with Yields up to 9.40%

    Muthoot FinCorp NCD Launches with Yields up to 9.40%

    Muthoot FinCorp, flagship company of Muthoot Pappachan Group (known as Muthoot Blue), on Friday launched its eighth public issue of secured and unsecured redeemable non-convertible debentures (NCDs) to raise ₹200 crore with an option to retain over subscription up to ₹200 crore, aggregating to ₹400 crore.

    The funds raised will primarily be used to augment the working capital and requisite lending, said Thomas John Muthoot, Chairman, Muthoot Pappachan Group, and Managing Director, Muthoot FinCorp.

    Board Approval

    The company has received board approval to raise NCDs through public issue in the aggregate amount of up to ₹1,500 crore. The first tranche of the issue with a face value of ₹1,000 each and minimum ticket size of ₹10,000 (10 NCDs), had opened on September 28, 2020 and closed on October 23, 2020.

    “The second tranche of the issue with the face value of ₹1,000 and a minimum ticket size of ₹10,000 (10 NCDs) opens now and is scheduled to close on January 25, with an option of early closure or extension in compliance to SEBI debt regulations,” Thomas John Muthoot said.

    Demand for Gold, MSME loans

    There will be nine options with tenure options of 27 months, 38 months and 60 months for the secured NCDs, and a tenure option of 72 months for the unsecured NCDs, offering returns with interest rates ranging from 8.25 per cent to 9.40 per cent. The issue has received credit rating ‘CRISIL A/Stable’ from Crisil.

    “Muthoot FinCorp has a diversified portfolio of products that is responsibly designed to empower our customers for their lifecycle needs. In the prevailing market conditions, especially when Indian economy is restarting, we have been experiencing a spike in demand for MSME and gold loans,” Thomas John Muthoot pointed out.

    Working Capital Needs

    “In order to enable nano, micro, and small businesses, our target customers, rebound, the company needs the infusion of more working capital and hence the decision to go for an NCD issue. The first tranche was received well by our investors, and we managed to raise ₹397.14 crore,” he said.

    Muthoot FinCorp, along with sister companies, has lakhs of customers actively engaged with it on a day-to-day basis. “We are confident about the success of this NCD issue, and hope that this will further fuel growth in the economy and add more value to stakeholders, including our investors,” Thomas John Muthoot added. Muthoot FinCorp NCD is being offered in tenors ranging from 27 months to 72 months and is rated ‘A’ by CRISIL


    About the NCD VIII-Issue from Muthoot FinCorp

    Muthoot FinCorp Ltd launched a non-convertible debenture (NCD) issue, offering yields up to 9.40% for a six-year tenor, on Friday. You can opt for monthly, annual, or cumulative interest payment options.

    The issue which opened on 1st Jan 2021 will remain open till 25th Jan 2021. The NCD is being offered in tenors ranging from 27 months to 72 months and is rated “A” by CRISIL. The issue size is ₹200 crore, with the company retaining the right to keep an additional ₹200 crore from the proceeds.

    Muthoot FinCorp NCD Jan 2021 Structure and Details are as follows:

    Muthoot FinCorp NCD Jan 2021 Structure
    Muthoot FinCorp NCD VIII Jan 2021 Structure

    Download Muthoot FinCorp NCD Prospectus

    What are the Credit Ratings for These NCDs?

    The VIII-series NCD issue from Muthoot FinCorp has been rated “A (Stable)”by CRISIL Limited.

    How the Returns from These NCDs are Taxed?

    Interest on NCDs is taxed at your income tax slab rate. Hence, investors, particularly those in the highest tax bracket, should consider the post-tax yield on such NCDs.

    How to Subscribe to These NCD?

    This issue is available in only in demat form. You can apply online through by logging to your demat account. Application forms can also be downloaded from the Muthoot FinCorp Website or the lead manager web site. For more information refer prospectus or Click Here

    Harshit Agrawal 8-Jan-2021 12409 Views

About Author

Harshit Agrawal -
Harshit Agrawal heads digital marketing for Muthoot Pappachan Group from its head quarter based in Kochi, India. He has managed digital marketing & activations for brands such as Maruti Suzuki, Hero MotoCorp, Bharti Airtel, Google, Mankind more

Enquire Now

Send us your query

By choosing the options I authorize Muthoot Fincorp Limited and other Muthoot Pappachan Group companies (including its Agents/representatives) to communicate with me on their product offering, promotions & services through Telephone, Mobile, SMS, WhatsApp & Email.

Related Posts

Sprite Image

Beware of fraudulent job consultants

It has been brought to our notice that certain individuals are receiving fraudulent emails, phone calls, and messages, etc, about job vacancies with Muthoot FinCorp and they are also being asked to deposit money in certain bank accounts.

Please be informed that such communications and practices are completely mala fide and sent with an intent to defraud the public and bring disrepute to the goodwill of our Company. Our Company does not ever demand any fee/money against recruitment nor for the application/interview process.

The public at large is hereby cautioned not to be misled by any such communications received through emails, message or any other communication mode.

Please contact us for further information about the genuineness or otherwise of such communications at:

Muthoot FinCorp Ltd.

MG Road, Near Spencer's, Trivandrum - 695 039

Phone: 0471 4911550 / 0471 4911430

Email: [email protected]