Muthoot Finance secured redeemable NCDs : Opens on 2nd March 2012

by khalid on 05/03/2012 · 0 comments

Muthoot Finance NCDs

Muthoot Finance Limited, the largest gold loan provider of India, has come out with its public issue of secured redeemable NCDs of the face-value of 1,000 each. The company is planning to raise upto Rs. 500 crore.

NCD Issue OPENS : 2nd March 2012

NCD Issue CLOSES : 17th March 2012

Key Highlights of the Issue:-

The NCD Issue has four investment options as for as the maturity period is concerned. The NCDs are available for 24 months, 36 months, 60 months and 66 months. The yield on redemption is 13% for 24 months, 13.25% for 36 and 60 months and 13.43% on 66 months. Allocations will be on a First Come First Serve Basis.

The interest would be paid annually, except for NCDs with a maturity of five-and-a-half years for which the payment option is cumulative. These NCDs would be listed on BSE only in order to improve trading volumes. Attractive rates of interest compared to other fixed income instruments such as Bank Fixed Deposits. These NCDs are available only in dematerialized form and can be bought individually or jointly.

Rating of NCDs :-

The NCDs have been rated by CRISIL as ‘CRISIL AA-/Stable’ and by ICRA as ‘ICRA AA-/stable’ too. The ratings indicate very low credit risk as well as a high probability of timely interest payment.

Post Tax Return of NCDs :-

Post-tax return for 30.9% tax bracketPost-tax return for 20.6% tax bracketPost-tax return for 10.3% tax bracket
24 months NCDs11.7%10.32%9.02%
36 months NCDs11.88%10.52%9.19%
60 months NCDs11.88%10.52%9.19%
66 months NCDs12.04%10.66%9.32%

Keral based gold financing company, Muthoot Finance Limited is growing very rapidly for last some time. The company earned Rs 406 crore profit in the first six months of FY11-12 compared with a profit of Rs 494 crore during the whole of FY10-11.

Stay tuned to BelltheBull Blog for more news on Muthoot Finance Limited !

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