Introduction:

Muthoot Finance Ltd, a trusted name in the financial sector, has unveiled its 32nd series of public issue of secured redeemable non-convertible debentures (NCDs). These NCDs, with a face value of ₹1,000 each, present an exciting investment opportunity for both individual and corporate investors. In this blog post, we’ll delve into the details of this offering, highlighting key features, benefits, and how to invest wisely.

Key Highlights:

1. Offer Details: Muthoot Finance Ltd’s 32nd NCD issue boasts a substantial base size of ₹100 crore. However, investors have the opportunity to participate in oversubscription, with a cap of ₹600 crore, resulting in a tranche limit of ₹700 crores.
2. Issue Period: The subscription window for these NCDs opened on September 21 and is set to close on October 6. Please note that the Board of Directors or the NCD committee may decide to close it earlier or extend the date.
3. ICRA Rating: Muthoot Finance Ltd’s NCDs under this issue have been awarded a stellar rating of [ICRA] AA+ (Stable) by ICRA. This rating signifies a high level of safety concerning timely financial obligation servicing.
4. Listing and Allotment: These NCDs are proposed to be listed on the BSE (Bombay Stock Exchange), and allotment will be done on a first-come, first-serve basis.
5. Enhanced Interest Rates: In a move to attract investors, Muthoot Finance Ltd has increased the interest rates on these NCDs by 0.50%. The rates now range from 8.75% to 9% p.a., making them a competitive choice in the investment landscape.
6. Retail Investor Advantage: For retail individual investors, there’s an additional incentive. They stand to receive an interest rate that is 1% p.a. higher than what is applicable to institutions and corporates.
7. Multiple Investment Options: Investors have the flexibility to choose from seven investment options. These options include ‘monthly’ or ‘annual’ interest payment frequency, as well as ‘on maturity redemption’ payments. This ensures that you can tailor your investment to your financial goals.
8. Fund Utilization: Muthoot Finance Ltd intends to utilize the funds raised through this NCD issue primarily for its lending activities, further strengthening its financial position.
9. Key Players: A K Capital Services Limited is the lead manager for this NCD issue, and IDBI Trusteeship Services Limited is the Debenture Trustee. Link Intime India Private Limited serves as the Registrar to the Issue.

Conclusion:

FAQs :

1. What is an NCD, and how does it work?

2. What is the face value of Muthoot Finance Ltd’s 32nd NCDs?

• The face value of each NCD is ₹1,000.

3. When does the subscription period for this NCD issue start and end?

• The subscription period began on September 21 and is scheduled to close on October 6, with the possibility of early closure or extension by the Board of Directors or the NCD committee.

4. What is the base size and oversubscription limit for this NCD issue?

• The base size of this NCD issue is ₹100 crore, with an option to retain oversubscription up to ₹600 crore, aggregating to a tranche limit of ₹700 crores.

5. What is the ICRA rating for these NCDs, and what does it signify?

• These NCDs have been rated [ICRA] AA+ (Stable) by ICRA, indicating a high degree of safety regarding timely servicing of financial obligations.

6. How are the NCDs allotted?

• Allotment of these NCDs is on a first-come, first-serve basis.

7. What are the interest rates offered on these NCDs?

• The interest rates on these NCDs have been increased by 0.50% and now range from 8.75% to 9% per annum.

8. Is there any advantage for retail investors?

• Yes, retail individual investors receive an additional 1% interest per annum compared to institutions and corporates.

9. Can you explain the investment options available for these NCDs?

• There are seven investment options, including ‘monthly’ or ‘annual’ interest payment frequency, as well as ‘on maturity redemption’ payments, with interest rates ranging from 8.75% to 9.00% p.a. This provides flexibility to investors based on their preferences.

10. What is the primary purpose of raising funds through this NCD issue? – Muthoot Finance Ltd intends to primarily utilize the funds raised through this NCD issue for its lending activities.

11. Who are the key players involved in this NCD issue? – A K Capital Services Limited serves as the lead manager to the Issue, IDBI Trusteeship Services Limited is the Debenture Trustee, and Link Intime India Private Limited is the Registrar to the Issue.

12. How can I subscribe to Muthoot Finance Ltd’s 32nd NCD issue? – To subscribe, you can contact your financial advisor or brokerage firm for guidance on the application process.

13. Are these NCDs eligible for tax benefits? – Please consult with a tax expert or financial advisor for information on potential tax benefits associated with these NCDs.

14. Where can I find more information about the NCD issue? – For detailed information, including the offer document and specific terms, you can visit the official website of Muthoot Finance Ltd or contact the designated intermediaries.

15. Is my investment in NCDs risk-free? –