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Established in 1939, Muthoot Mercantile Limited NCD is a non-banking financial company with a strong presence in lending against various assets such as gold, investments, health insurance, forex services, and money transfer.
Headquartered in Thiruvananthapuram, Kerala, the company has branches across several states in India and plans for further expansion. With an 84-year legacy, the company initially focused on small-scale lending against households and used gold jewelry, evolving its operations over time.
Muthoot Mercantile NCD Nov 2023 Details
- Issue Period: December 4, 2023 – December 15, 2023
- Security Name: Muthoot Mercantile Limited
- Security Type: Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
- Issue Size: Rs 100.00 Crores (Base) | Rs 200.00 Crores (Shelf)
- Issue Price: Rs 1000 per NCD
- Face Value: Rs 1000 each NCD
- Minimum Lot size: 1 NCD
- Market Lot: 1 NCD
- Listing At: BSE
- Credit Rating: IND BBB/Stable by India Ratings & Research Private Limited
- Tenor: 367 days, 18, 24, 36, 60, 75 months
- Series: Series I to XI
- Payment Frequency: Monthly and Cumulative
- Basis of Allotment: First Come First Serve Basis
- Debenture Trustee/s: Mitcon Credentia Trusteeship Services Limited
NCD Rating and Allocation
The NCDs to be issued are rated “IND BBB/Stable” by India Ratings & Research Private Limited. The allocation ratio for NCDs is as follows:
- Institutional: 10%
- Non-Institutional: 40%
- Retail: 50%
- Category 4: 0%
Muthoot Mercantile Limited NCD Coupon Rates
The company offers different series with varied coupon rates and tenors. Here are the details:
| Series | Frequency | Tenor | Coupon (% per Annum) | Effective Yield (% per Annum) | Amount on Maturity (In Rs.) |
|---|---|---|---|---|---|
| 1 to 11 | Monthly | Cumulative | Varying | Varying | Varying |
Company Promoter and Financial Performance
The promoter of Muthoot Mercantile Limited NCD is Mathew Mathaininan. The company witnessed a 41.25% increase in revenue and a 6.85% rise in profit after tax (PAT) between the financial years ending on March 31, 2023, and March 31, 2022.
Objects of the Issue
The raised funds, after deducting related expenses, will be utilized for the following purposes:
- Onward lending, financing, and repayment/prepayment of principal and interest on existing borrowings.
- General corporate purposes.
