Friday, March 2, 2012

Muthoot Finance NCDs at 13-13.25% - Details

Gold loan company Muthoot Finance Ltd has come up with a issue of secured,non-convertible debentures aggregating upto Rs.2500/- million and option to retain the oversubscription upto Rs 2500 millions for issuance of additional NCDs aggregating upto total of Rs 5000/- millions.


  • Investors have four options to choose from. The tenor across the options is in the range of 2-5.5 years and the interest offered is in the range of 13-13.25% per annum. All options offer annual interest payment except option 4, which offers to double your principal, taking your effective yield to 13.43% per annum.
  • The interest earned is taxable. For the highest tax bracket (30.90%), post-tax returns will be 8.98-9.28% per annum. For the lowest tax bracket (10.30%), they will be between 10.30% and 12.05% per annum.
  • A unique feature is that you will get a 13% interest on the refunded application money.
  • NCDs are to be issued compulsorily in dematerialized form and will be listed and traded on BSE.

Interest rate annual : 13%, 13.25% and 13.25% for 2, 3 and 5 years respectively

Cumulative Option : Double money in 5 ½ Years

Minimum Investment : Rs.5000 and multiples of Rs.1000 thereafter.

Closing Date : 17th March, 2012

Allotment on first come first serve basis.

Draft prospectus is available at here.

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4.5 out of 5 stars Reviewer:adminFebruary 05, 2021