fb
DHANI

Muthoot Fincrop Limited IPO

rating


A+

CRISIL

IIFL Home Loan Limited

IPO Opening Date
January 5, 2022
IPO Closing Date
January 28, 2022
bondsindia
Time to close

IPO Details

Issue Size
Rs 200 crore (Base issue size) with a green shoe option of Rs 200 crore aggregating upto Rs 400 crore.
bondsindia
Download
Information Memorandum
Face Value
Rs 1000
bondsindia
Download
Product Note
Minimum no of Bonds
10
Lot Size (Multiplier)
1
Nature of Instrument
Secured ,Redeemable , Non-Convertible Debenture
Listing
To be listed on BSE only
Exchange Bid Timing( 24 hour format)
10:00 to 18:00

IPO Details

Issue Size
Rs 200 crore (Base issue size) with a green shoe option of Rs 200 crore aggregating upto Rs 400 crore.
Face Value
Rs 1000
Minimum no of Bonds
10
Lot Size (Multiplier)
1
Nature of Instrument
Secured ,Redeemable , Non-Convertible Debenture
Listing
To be listed on BSE only
Exchange Bid Timing( 24 hour format)
10:00 to 18:00

*Allotment on first come first serve basis

ISSUE STRUCTURE
Options
I
II
III
IV
V
VI
VII
VIII
IX
X
Nature
Secured
Secured
Secured
Secured
Secured
Secured
Secured
Secured
Secured
Secured
Tenure
27
Months
38
Months
60
Months
72
Months
96
Months
27
Months
38
Months
60
Months
72
Months
96
Months
Frequency of Interest Payment
Monthly
cumulative
Minimum Application
Rs 10000/- (10 NCDs)
In multiples, of
1 NCD after minimum application
Face Value of NCDs (Rs/NCD)
1 NCD after minimum application
Issue Price (Rs/NCD)
Rs 1000/- (1 NCD)
Mode of Interest Payment/Redemption
Through various options available
Coupon(%)per annum
8.00%
8.25%
8.50%
8.75%
9.00%
NA
NA
NA
NA
NA
Coupon Type
Fixed
Redemption Amount (Rs/NCD) for Debenture Holders
1,000
1,000
1,000
1,000
1,000
1,197
1,297
1,527
1,687
2,049
Effective Yield (%)(per annum)
8.30%
8.56%
8.83%
9.10%
9.37%
8.31%
8.57%
8.83%
9.11%
9.37%

Why choose Bonds India?

Bonds India is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. Bonds India brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else.

BondsIndia ditches the traditional ways of investing by offering a blockchain-based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose Bonds India for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for India Infoline IPO on BondsIndia’s website.

Place your bid in three simple steps:

1

Key in Basic Details

2

Choose the IPO Series

3

Place the bid

Company Details

About the Issuer
  • Muthoot FinCorp Ltd, the flagship company of Muthoot Pappachan Group, is one of the largest NBFCs in India, registered with the Reserve Bank of India. The company has over 3600 branches across India.
  • Products Offered
  • Gold Loan
    Muthoot provides gold loan upto Rs 1 crore with loan upto 80% of the gold value for any purpose. The loan is processed within 30 minutes. Flexible repayment options available
  • Small Business Loan
    Fuel your business with Muthoot Fincorp’s small business loans and achieve all your dreams as they come with flexible tenures, easy repayment options, and minimum documentation based on RBI guidelines. The criteria to avail our Small Business Loan is simple and flexible with loans starting as low as Rs. 15,000.
  • Home Loan
    Muthoot provides affordable housing loans to customers in the middle and lower income category .It offers low ticket loans with an extended repayment period, loans for the purchase of property, house or apartment, loans for home extension, and loans against residential property.
  • Auto Loan
    Two Wheeler Loan: Up to 100% loan of the on-road price of bikes and scooters at attractive interest rates starting at 0.99%* p.a. and easy EMIs. Used Car Loan: Muthoot offers hassle-free loans to buy a used car of choice at low interest rates.
    Subsidiaries
  • Muthoot Microfin Limited
    Muthoot Microfin Limited is one of the leading microfinance institution in India, focussed on providing micro loans to women entrepreneurs, predominantly in rural regions of India. Customers are organized in groups of four to ten women from economically weaker sections of society, living in rural and semi-urban areas or urban slums.
  • Muthoot Housing Finance Company Limited
    Muthoot Housing Finance Company Ltd, provides affordable housing loans to customers in the middle and lower income category .It offers low ticket loans with an extended repayment period, loans for the purchase of property, house or apartment, loans for home extension, and loans against residential property.
  • Muthoot Pappachan Technologies
    Muthoot Pappachan Technologies ,technology arm of the Muthoot Blue Group , provides a wide portfolio of products and services like, cloud solutions, consulting services, product implementation services, application development & maintenance/hosting services, virtualization , green technologies etc.
Company Financials
finacial performance
Key Strengths
  • Established market position in gold financing, supported by extensive experience of the promoters

    MFL is the third largest gold loan non-banking financial company (NBFC). The promoters have spent over seven decades in the business of lending against gold jewellery. Over the years, the group has established a strong reputation and brand in South India, particularly Kerala and Tamil Nadu, and has an appropriate assessment and underwriting methodology.  The gold loan AUM is estimated at around Rs 18,068 crore as on March 2021 from Rs 14,924 crore as on March 31, 2020.

  • Diversified product profile of the MPG group

    Currently, the group operates in five major segments: loan against gold jewellery, two-wheeler finance, microfinance, housing finance and small business loans. Overall managed AUM of MPG is estimated to be around Rs 26,993 crore as on March 31, 2021 (Rs 24,103 crore as on March 31, 2020). The proportion of gold loans has seen steady increase to over 60% as on March 31, 2020 and further to 67% as on March 31, 2021. The microfinance portfolio is second largest with around 18% of overall portfolio of the group as on March 31, 2021. 

  • Healthy asset quality in the gold loan segment to support overall group asset quality

    The gross NPAs for MFL stood at 1.92% as on March 31, 2021, against 1.86% as on March 31, 2020. The NPAs are primarily in the SME portfolio wherein the performance was affected due to slowdown in the sector. In the gold loan segment, MFL has maintained healthy asset quality over the years, backed by strong collection efficiency, as reflected in GNPAs of 1.0-2.0% over the last five fiscals. Asset quality, as better measured by credit costs, has also been under control within 0.5% during this period for gold loans.

  • Improving earnings profile for gold loan business

    MFL's profitability, on standalone basis, has improved in fiscal 2021 on account of higher returns from the gold business during the pandemic, steady reduction in overall opex cost over the years and overall low credit costs.
    RoMA improved significantly to 1.8% compared to just 1.2% and 1.0% in fiscal 2020 and 2018, respectively. On a consolidated level, MFL’s profitability accounts for 83% of the overall group profits and is expected to support the group’s profitability. Therefore, profitability of MPG is expected to improve steadily over the medium term. However, the group’s ability to manage earnings primarily within non-gold segments will be monitored

Credit Risks
  • Geographical concentration in portfolio

    High geographical concentration persists, with South India accounting for around 63% of the gold loan portfolio; with Tamil Nadu and Kerala constituting around 26% of the gold loan portfolio as on March 31, 2021 (as compared to 70% and 34%, respectively, as on March 31, 2019). At the MPG level, around 80% of AUM is concentrated in South Indian states, with Tamil Nadu and Kerala constituting around 47.

  • Potential challenges associated with non-gold loan segments

    The non-gold segments accounted for less than 35% of the overall portfolio as on March 31, 2021. While MPG has managed to grow these businesses and increase the segmental share over the last 2-3 years, potential challenges linked to seasoning of the loan book and asset quality remain. Asset quality in both microfinance and vehicle finance segments has witnessed deterioration. The 90+ dpd level for MML (microfinance business) stood at 8.1% as on March 31, 2021 (5.7% as on March 31, 2020). The gross NPAs in case of MCSL (vehicle finance business) have increased to 11.1% as on March 31, 2021, against 6.8% as on March 31, 2020. The 90+ dpd for MHFL (housing finance business) stood at 3.5% as on March 31, 2021.

Request a Call Back

Request in Process

Please enter the OTP sent to the mobile number with reference number

Didn’t recieve OTP? Resend Again

Request in Process

bondsindia

You will get a call back
within the next 2 minutes

Call Initiated

Select your time

Select the time slot as per
your preference

We will get back to you

tax