Muthoot Finance is the largest gold loan NBFC in India in terms of loan portfolio. According to the ICRA Analytics Limited (Formerly known as ICRA Management Consulting Services Ltd) Industry Report, Gold Loans Market in India, 2019 (“IMaCS Industry Report 2019”), Company ranked the largest gold loan company in India in terms of loan portfolio as of March 31, 2019. It provide personal loans and business loans secured by gold jewelry, or Gold Loans, primarily to individuals who possess gold jewelry but are not able to 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. According to the IMaCS Industry Report 2019, as of March 31, 2019 the branch network was the largest among gold loan NBFCs in India. The Gold Loan portfolio as of June 30, 2020 comprised approximately 7.58 million loan accounts in India that they serviced through 4,573 branches across 22 states, the national capital territory of Delhi and six union territories in India. As of June 30, 2020 they have employed 25,430 persons in our operations. Branches act as the primary point of sale by assisting with thier loan origination, disbursal and collection processes as well as facilitating customer interaction.
Muthoot Finance is a “Systemically Important Non-Deposit Taking NBFC” (NBFC-ND-SI) headquartered in the south Indian state of Kerala. The operating history has evolved over a period of 81 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887. Since the formation, Company has broadened the scale and geographic scope of gold loan operations so that, as of March 31, 2012, they are the India’s largest provider of Gold Loans. For the years ended March 31, 2016, 2017, 2018, 2019 and 2020, revenues from gold loan business constituted 98.49%, 97.95%, 97.64%, 97.32% and 96.81%respectively of total income. In addition to Gold Loans business, company provide money transfer services through their branches as sub-agents of various registered money transfer agencies and also provide collection agency services. We have started providing unsecured loans to salaried individuals and loans to traders and self employed. They also provide micro-finance, housing finance, vehicle and equipment finance and insurance broking services through subsidiaries.
Credit Rating of Muthoot Finance
For this issue, The NCDs have been rated ‘[ICRA] AA+/ “Stable” by ICRA and “CRISIL AA+/Stable” by CRISIL
Issue Purpose
Funds will be used For the purpose of lending a minimum of 75% of the amount raised and allotted in the Issue and the rest will be used For General Corporate Purposes which shall not exceed 25% of the amount raised and allotted in the Issue.
Issue Size
Public Issue by the Company of secured redeemable non-convertible debentures of face value of Rs. 1,000 each (“NCDs”) for an amount of 1,000 million (“Base Issue”) with an option to retain oversubscription up to Rs. 16,000 million aggregating upto 17,000,000 NCDs amounting to Rs. 17,000 million (“Tranche III Issue Limit”) (“Tranche III Issue”) which is within the shelf limit of Rs. 40,000 million.
Issue Structure
Nature of Issue: Here all the NCD series are secured by Pari Passu Charge on Company's Assets
Other Issue Details
How to apply for Muthoot Finance NCD
If you are planning to apply for this NCD issue then you can apply here through online and offline both modes. if you are planning to apply through online mode then you can apply here through your net banking option just like you apply for your Equity IPOs, you can also apply here through using the BSE Direct Platform. Now if you are planning to apply through offline mode then you have to fill the physical application form and have to submit it to your broker.
