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IPO

BondsIndia

AA+

Opening Date

28 Nov 2022

Closing Date

19 Dec 2022

Yield

Upto 8.25%

Tenure

Upto 60 Months

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Home   /   IPO   /   Muthoot Finance Limited

IPO

MUTHOOT FINANCE LIMITED

Ongoing IPO

MUTHOOT FINANCE LIMITED

Opening Date
28 Nov 2022

BondsIndia

AA+

Closing Date
19 Dec 2022

bondsindia

Time to close

Yield
Upto 8.25%

Tenure
Upto 60 Months

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IPO Details

IPO Details

Issue Size (Including Green Shoe Option) 300.00 crores
Face Value ₹1000
Coupon Upto 8.25%
Minimum Number of Bonds 10
Lot Size (Multiplier) 1
Allotment Date (Tentative) 23 Dec 2022
Listing Date (Tentative) 27 Dec 2022
Exchange Bid Time (24 Hours) 10:00 to 17:00

Documents attached

Information Memorandum

 

BondsIndia
Product Note

 

BondsIndia

*Allotment on first come first serve basis

 

ISSUE STRUCTURE

Series
I
II
III*
IV
V
VI
VII
Frequency of Interest Payment
Monthly*
Monthly*
Annually**
Annually**
Annually**
NA
NA
Minimum Application 
10,000 (10 NCDs) across all Options
Face Value/ Issue Price of NCDs (/ NCD)
1,000
In Multiples of thereafter (₹) 
1,000 (1 NCD) across all Options
Type of Instrument 
Secured NCDs
Tenor from Deemed Date of Allotment
36
Months
60
Months
24
Months
36
Months
60
Months
36
Months
60
Months
Coupon Rate (% per annum) for All Categories (A)
7.35%
7.50%
7.25%
7.60%
7.75%
NA
NA
Additional incentive above Coupon Rate (% per annum) on any Record Date as applicable to Category III and Category IV investors (B)
0.50%
0.50%
0.50%
0.50%
0.50%
NA
NA
Aggregate of the Coupon Rate and the additional incentive above the Coupon Rate on any Record Date as applicable to Category III and Category IV investors {(A) + (B)}
7.85%
8.00%
7.75%
8.10%
8.25%
NA
NA
Effective Yield (per annum) for Category I and Category II
7.35%
7.50%
7.25%
7.60%
7.75%
7.60%
7.75%
Effective Yield (per annum) for Category III and Category IV
7.85%
8.00%
7.75%
8.10%
8.25%
8.10%
8.25%
Amount ( / NCD) on Maturity for NCD Holders in Category I & II
1,000
1000
1,000
1,000
1000
1,245.77
1,452.40
Amount (/ NCD) on Maturity for NCD Holders in Category III & IV
1,000
1000
1,000
1,000
1000
1,263.21
1,486.41
Maturity / Redemption Date (years from the Deemed date of Allotment)
36
Months
60
Months
24
Months
36
Months
60
Months
36
Months
60
Months
Put And Call Option
Not Applicable
Secured and non-convertible

How to invest in the Muthoot Finance Limited IPO?

Application process on BondsIndia platform is simple and seamless.

•Click on the details of the company on the home page

•Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank and Demat details

•Then, confirm the quantity and price and select payment method.

•That’s all folks , bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

Why choose BondsIndia?

BondsIndia 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. BondsIndia 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 Technology based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose BondsIndia for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for Muthoot Finance Limited 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

How to invest in the
Muthoot Finance Limited ?

Application process on BondsIndia platform is simple and seamless.

  • Click on the details of the company on the home page
  • Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank, and Demat details
  • Then, confirm the quantity and price and select a payment method.
  • That’s all folks, bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

AUM

70,555 Crs

GNPA

3.80%

NPA

3.40%

  • Muthoot Finance Limited (MFL) is the flagship company of the Kerala-based business house, The Muthoot Group, which has diversified operations in financial services, healthcare, education and hospitality. MFL was incorporated in 1997 and is India’s largest gold loan focussed NBFC with total loan assets (standalone) of Rs. 56,689 crore and 4,617 branches as on June 30, 2022. The company derives a major portion of its business from South India (50% of the total gold loan portfolio as on March 31, 2022), where gold loans have traditionally been accepted as a means of availing short-term credit, although it has increased its presence beyond South India over the last few years.
  • MFL reported a standalone net profit of Rs. 3,954 crore on an asset base of Rs. 70,555 crore in FY2022 against a net profit of Rs. 3,722 crore on an asset base of Rs. 63,465 crore in FY2021. For Q1 FY2023, it reported a net profit of Rs. 802 crore on an asset base of Rs. 65,808 crore as on June 30, 2022. The consolidated portfolio stood at Rs. 63,444 crore as on June 30, 2022 compared to Rs. 64,494 crore as on March 31, 2022 (Rs. 58,280 crore as on March 31, 2021), with gold, microfinance and housing accounting for 89%, 7% and 2%, respectively.
  • Established franchise and leadership position in gold loan segment MFL has a track record of around two decades in the gold loan business and is India’s largest gold loan focussed non-banking financial company (NBFC) with a total portfolio of Rs. 56,689 crore (of which 99% is gold loan) as on June 30, 2022; the portfolio grew by 7.7% on a year-on-year (YoY) basis. The consolidated portfolio stood at Rs. 63,444 crore in June 2022 compared to Rs. 58,135 crore in June 2021, of which gold, microfinance and housing accounted for 88.5%, 7.4% and 2.3%, respectively.
    As on June 30, 2022, MFL had an extensive pan-India network of 4,617 branches; 60% of its branches are in South India, where it has an established franchise. The strong brand value of Muthoot, its experienced promoters and senior management team, and its efficient internal control and audit systems are expected to support the overall business growth going forward.
  • Healthy earnings performance; moderation in the recent past The company’s consolidated net profitability remained healthy, with its return on managed assets (RoMA) at 4.4% in Q1 FY2023, not withstanding the moderation from 5.5% in FY2022 and 6.1% in FY2021 (6.5% in FY2020). The NIM {as a percentage of average managed assets (AMA)} moderated to 9.1% in Q1 FY2023 from 10.6% in FY2022 and 11.4% in FY2021, notwithstanding the improvement in the leverage, as MFL offered gold loans at lower yields for a short duration (H2 FY2022 and Q1 FY2023) due to competitive pressure. The operating profitability was also impacted due to the increase in the operating cost ratio to 3.5% in Q1 FY2023 because of advertising costs and higher corporate social responsibility (CSR) expenses from 3.0% in FY2022 (3.3% in FY2021; 4.3-4.6% during FY2017-FY2020). However, the earnings performance remains supported by the low credit costs (less than 1% over the last 10 years and average of 0.5%) in the gold loan business. ICRA expects the net profitability to stabilise at 4.0-5.0% over the medium term.
    Healthy earnings performance; moderation in the recent past
  • Capitalisation to remain comfortable over the medium term MFL has a comfortable capitalisation profile with the standalone gearing improving to 2.5 times as on June 30, 2022 from 2.8 times as on March 31, 2022 (3.1 times as on March 31, 2021). The improvement was driven by the limited portfolio growth and the moderation in the on-balance sheet liquidity, which led to a net decrease in the external borrowings. The consolidated managed gearing stood at 2.7 times as on June 30, 2022 (2.9 times as on March 31, 2022). The company is expected to be comfortably placed to meet the medium-term capital requirements of its subsidiaries without affecting its own capital structure. ICRA expects MFL’s consolidated managed gearing to remain at around 3.0 times over the medium term.
  • Performance of non-gold segments to remain a monitorable; sizeable share of gold loans would support overall portfolio quality MFL’s standalone portfolio almost entirely consists of gold loans and it has diversified its exposure via its subsidiaries, namely Belstar Microfinance Limited (Belstar; microfinance), Muthoot Homefin (India) Limited (MHL; affordable housing) and Muthoot Money Limited (MML; vehicle finance). The consolidated portfolio is currently concentrated towards gold loans, comprising 89% of the loan book while microfinance, affordable housing and vehicle finance accounted for 7.4%, 2.3% and 0.3%, respectively, as on June 30, 2022. The loan books of MHL and MML declined by 13% and 41%, respectively, as of June 2022 on a YoY basis while Belstar registered a growth of 53%. The GS3 for the subsidiary companies, viz. Belstar, MHL and MML, stood at 7.3%, 2.6% and 7.8%, respectively, in June 2022 vis-à-vis 3.7%, 5.9% and 18.9%, respectively, in June 2021. The performance of the non-gold segments was impacted by the Covid-19 pandemic-related disruptions because of the unsecured nature of the microfinance business and the average credit profile of the borrowers in the housing and vehicle finance segments.
  • Operations concentrated in South India MFL’s operations are largely concentrated in South India, which constituted 60% of its total branch network and 50% of its total loan portfolio as on June 30, 2022. ICRA, however, notes that the share of the portfolio in South India has reduced from 57% in March 2015. Geographical diversification is expected to improve steadily over the medium to long term with an improvement in the scale of the gold loan portfolio and the stabilisation of the performance of the non-gold asset segments.
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* Investments in debt securities are subject to risks. Read all the offer related documents carefully.
N/A stands for Not Applicable

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