March 2, 2012 by akhilendra
Muthoot Finance Ltd NCD Issue Review & Details
Muthoot Finance Ltd NCD Issue Review & Details
Muthoot Finance Ltd NCD Issue Review & Details – Opens on 2 March 2012
Options Particulars
Issuer Muthoot Finance Ltd
Issue Base issue size of Rs. 250 Crores with an option to retain over-subscription upto additional Rs. 250 Crores
Issue Opens 2nd March 2012
Issue Closes 17th March 2012
Basis of allocation first come first serve basis
Issuance and Trading Compulsorily in dematerialized form
Trading Lot 1 (one) NCD
Rating AA-/Stable by CRISIL & ICRA
Interest payable Interest on application & Interest on refund money – 13% p.a.
Deemed Date of Allotment Shall be the date as decided by the duly authorized committee of the board constituted by resolution of the board.
| Options | | | || | ||| | |V |
| Frequency of Interest Payment | Annual | Annual | Annual | NA |
| Minimum Application | Rs. 5,000 (5 NCDs)(for Options I, II, III and IV either taken individually or collectively) | |||
| In Multiples of (in Rs) | 1,000 (1 NCD) | 1,000 (1 NCD) | 1,000 (1 NCD) | 1,000 (1 NCD) |
| Face Value of NCDs (in Rs) | 1,000 | 1,000 | 1,000 | 1,000 |
| Issue Price (Per NCD – in Rs) | 1,000 | 1,000 | 1,000 | 1,000 |
| Coupon Rate (%) for NCD | 13.00 | 13.25 | 13.25 | NA |
| Effective Yield (% per annum) | 13.00 | 13.25 | 13.25 | 13.43 |
| Tenor (in Months) | 24 | 36 | 60 | 66 |
| Redemption date (in Months from the Deemed date of Allotment) | 24 | 36 | 60 | 66 |
| Redemption amount (per NCD) | Repayment of the Face Value plus any interest that may have accrued at the Redemption Date. | Rs. 2000 | ||
Issue details
| Who can apply * | |
| Category I | Public financial institutions, statutory corporations, commercial banks, co-operative banks and regional rural banks; Provident funds, pension funds, superannuation funds and gratuity fund; Venture Capital funds; Insurance Companies; National Investment Fund; Mutual Funds (Issue allocation 15%) |
| Category II | Companies; bodies corporate, societies; trusts; research organizations, Partnership and Limited liability partnerships; Resident Indian individuals; and HUF (applying for NCDs aggregating to a value exceeding Rs. 500,000, across all series of NCDs (Issue allocation 20%) |
| Category III | Resident Indian individuals; and HUF (applying for NCDs aggregating to a value not more than Rs. 500,000, across all series of NCDs (Issue allocation 50%) |
| Category IV | NRIs on a non-repatriation basis only * (Separate Form is to be filled in by NRIs) (Issue allocation 15%) |
cleverme.co.nz">How to Budget - April 24, 2012 @ 8:48 am
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Mayur Mehta - March 6, 2012 @ 1:07 pm
Hi,
If i am a small investor who want to get good returns in short term and need low risk associated then what should I do…? Where to invest…? Is this a good option for me….?
akhilendra - March 6, 2012 @ 3:20 pm
If your risk appetite is low and want to get good returns in short term, then i will suggest you to look at debt or balance funds. Don’t invest in share market for short term if your risk appetite is low.
facebook.com/hesh99">Mahesh Subramanian - March 3, 2012 @ 6:16 am
hey akhil..nice detailing on the issue.i was wondering if there is any risks associated with ncd's..is it safe as fd's ?
akhilendra - March 3, 2012 @ 5:57 pm
Mahesh, Personally i believe there is always some risk associated with any & all financial instruments. In general NCDs/Non convertible debentures are like unsecured loan to company which cannot be converted to stocks. They are often available at high interest rates than fixed deposits, they are better investment option. In case of FDs, we are putting money with banks and in case of NCDs, we are putting money with a non banking company, in this case, it is muthoot finance. So practically risk is associated with the company and if anything happens to the company in the period, it is going to have its own impact.