Muthoottu Mini Financiers: The Effective Yield per annum under various options for the NCDs Range from 8.84% to 10.20%
- Issue of Secured NCDs of face value of Rs. 1,000 each
- The NCD Issue includes a Base Issue Size of Rs.100 crores with an option to retain over-subscription up to Rs 100 crore
- Face value and Issue price Rs 1,000 per NCD
- NCD Issue rated as ‘CARE BBB+’/Stable (Triple B; Outlook: Stable) by CARE Ratings Limited
- NCD Issue opened on December 1, 2021 and is scheduled to be closed on December 28, 2021
- The NCDs are proposed to be listed on BSE Limited
Mumbai/Kochi, December 2, 2021: Incorporated in the year 1998, Muthoottu Mini Financiers Limited (“Muthoottu Mini”/ ‘MMFL’), a non-deposit taking systemically important NBFC involved in the gold loan sector lending money against the pledge of household gold jewelry, has announced the issue of secured, redeemable, non-convertible debentures of the face value of Rs. 1,000 each at par, aggregating up to Rs.200 Crores, is now open and scheduled to be closed on December 28, 2021.
The Issue has a base issue size of Rs. 100 crores with an option to retain over-subscription up to Rs 100 crore. The NCDs are proposed to be listed on BSE as the Designated Stock Exchange for the Issue. The NCDs have been rated ‘CARE BBB+’: Stable (‘Triple B Plus; Outlook: Stable’) by CARE Ratings Limited (“CARE Ratings”).
As on 30th September 2021, MMFL had 3,95,175 gold loan accounts, predominately from rural and semi urban areas, aggregating to Rs. 2,033.66 crores which accounted for 97.41% of its total loans and advances. The yield on its gold loan assets is at 19.39% as at September 30, 2021.
In addition to its gold loan business, it offers micro finance loan, depository participant, money transfer, insurance, broking services, PAN card related and travel agency services.
The Company, erstwhile part of a family business enterprise that was founded by Ninan Mathai Muthoottu in 1887, is now spearheaded by Nizzy Mathew, Chairman & Whole-time Director and Mathew Muthoottu, Managing Director.
Vivro Financial Services Private Limited is the sole Lead Manager to the Issue, Mitcon Trusteeship Services Limited is the Debenture Trustee of the Issue and Link Intime India Private Limited is the Registrar to the Issue.
Net proceeds of the Issue will be utilized for the purpose of onward lending, financing, and for repayment/prepayment of principal and interest on borrowings of the Company (at least 75%) and the rest (up to 25%) for general corporate purposes.
The terms of each series of Secured NCDs, offered under Options I to VI Issue are set out below:
About Muthoottu Mini Financiers:
Muthoottu Mini Financiers Limited is an RBI registered non-deposit taking systemically important NBFC in the gold loan sector, lending money against the pledge of household gold jewellery for over 2 decades. As on September 30, 2021, the Company had a network of 809 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Haryana, Maharashtra, Gujarat, Delhi and Goa and the union territory of Puducherry and employed 3,205 persons in its business operations.
Muthoottu Mini Financiers Limited is subject to market conditions and other considerations, proposing a public issue of Secured Redeemable Non-Convertible Debentures and has filed the Prospectus with the Registrar of Companies, Kerala and Lakshadweep, BSE Limited and Securities and Exchange Board of India . The Prospectus is available on our website at www.muthoottumini.com, on the website of the stock exchange at www.bseindia.com and the website of the Lead Manager at www.vivro.net. All investors proposing to participate in the public issue of NCDs by Muthoottu Mini Financiers Limited should invest only on the basis of information contained in the Prospectus. Please see section entitled “Risk Factors” beginning on page 16 of the Prospectus for risk in this regard.
The NCDs offered through the Prospectus are proposed to be listed on the BSE Limited (“BSE”). Our Company has obtained ‘in-principle’ approval for the Issue from BSE vide its letter dated November 26, 2021. BSE shall be the Designated Stock Exchange for the Issue.
It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the Prospectus has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer Clause of the BSE Limited.
The Company is having a valid Certificate of Registration dated April 13, 2002 and a Fresh Certificate of Registration dated January 1, 2014 bearing Registration No. N-16.00175 issued by the Reserve Bank of India under Section 45 IA of the Reserve Bank of India Act, 1934. However, RBI does not accept any responsibility or Guarantee about the present position as to the financial soundness of the Company or for the correctness of any of the statements or representations made or opinions expressed by the Company and for repayment of deposits/discharge of liability by the Company.