September 9, 2011

Religare Finvest LTD – NCDS

Religare Finvest LTD – NCDS-COMPANY PROFILE:

  • Religare Finvest Ltd (RFL) was incorporated as a private limited company called Skylark Securities Private Limited on January 6, 1995. Subsequently its name was changed to “Religare Finvest Limited” vide a fresh certificate of incorporation dated April 4, 2006.
  • RFL is a systemically important non-deposit accepting non-banking finance company (NBFC), focusing on small and medium enterprises (SME) financing and retail capital market financing.

Religare Finvest LTD – NCDS ISSUE SALIENT FEATURES :

  • Interest rate range from 12.00% to 12.50% depending on the series applied for (Option I & Option II)
  • Higher interest rates for individuals applying up to Rs. 500,000
  • Credit Ratings of “ICRA AA- (Stable)” and “CARE AA-“
  • Non-convertible debentures (NCDs) are allotted on a first-come-first-serve basis
  • NCDs are allotted on demat mode only
  • NCDs have two series of options: 60 months and 36 months

Religare Finvest LTD – NCDS ISSUE INVESTMENT OPTIONS

Options | ||
Minimum Application Rs10,000 (10 NCDs; for all options of NCDs, namely Options I and II either taken individually or collectively).
Face Value/Issue Price Rs. 1,000 (1 NCD)
In Multiples Of Rs. 1,000 (1 NCD)
Interest Rate (%) per annum
1) For NCD holders in Category I 12.10% 12.00%
2) For NCD holders in the Non-Institutional Portion (Category II) 12.25% 12.15%
3) For NCD holders in the Reserved Individual Portion (Category III) 12.50% 12.25%
Yield on Maturity (%) (per annum)
1) For NCD holders in Category I 12.10% 12.00%
2) For NCD holders in the Non-Institutional Portion (Category II) 12.25% 12.15%
3) For NCD holders in the Reserved Individual Portion (Category III) 12.50% 12.25%
Listing BSE BSE
Frequency of Interest Payment Annual Annual
Redemption Amount (Rs/NCD) Repayment of the face value plus any interest that may have accrued on the redemption date. Repayment of the face value plus any interest that may have accrued on the redemption date.
Tenor 60 months 36 months


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April 19, 2011

Muthoot Finance IPO Analysis

Muthoot finance is quite a familiar name in the gold loan industry. They have made some descent growth in the last few years. Now they are going public and coming with their IPO. It status is RBI registered NBFC non deposit taking which helps it in fund raising. They are offering it at a price band of Rs 160-175. Issue will open on April 18 and will remain open till April 21. Its CRISIL rating is 4/5 and CRA rating is also 4/5. This indicates good fundamentals.

Gold loan industry is growing rapidly in Indian. Muthoot finance is one of the prominent players in the industry. Though there are few uncertainties regarding regime, regulations and competition from banks but muthoot’s track record goes in its favor. It has consistently expanded in the new geographies, its management has shown consistency and the benefit of being early bird in the sector has also helped them a lot.

Muthoot finance provides personal and business loan against gold. Its it has a outstanding loan of Rs13,004 crore as of nov 2010. It has a market share of 19.4 per cent. It is aiming to garner around Rs824-901 crore to fund its business. Existing PE investor will stay invested in the firm, so it is also a good sign for the investors. It has a compounded annual growth rate (CAGR) of 75.7 per cent during FY2006-2010.

Their business model of providing loan at lower interest rates and quickly opening new branches to target new customers has helped them in maintaining high growth.  There is one risk to them and that is they are getting some serious competition from banks like ICICI and HDFC. These banks are now aggressively targeting gold loan business and offering new attractive schemes.

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