Muthoot Fincorp Limited NCDs Investment Opportunity

IPO Details

  • Opening Date
  • Close Date
  • Allotment Date
  • Listing Date
  • Face Value
  • Issue Price
  • Market Lot
  • Total Issue Size
  • October 11, 2024
  • October 24, 2024
  • October 25, 2024
  • October 11, 2024
  • 1000
  • 1000
  • 10
  • 250 crores
Muthoot Fincorp Limited NCDs Investment Opportunity
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How to Analyze an IPO: A Comprehensive Guide for Investors

Overview

Muthoot Fincorp Limited, a leading non-banking financial company (NBFC), has launched its Tranche II NCD (Non-Convertible Debenture) issue as part of its ₹25,000 lakh offering. With a strong presence in the Indian gold loan market, Muthoot Fincorp aims to raise funds for various corporate purposes, including loan refinancing, working capital needs, and other operational expenditures.

The company, incorporated in 1997 and headquartered in Trivandrum, Kerala, is known for offering quick and accessible gold loans. Muthoot Fincorp’s NCDs are rated “CRISIL AA-/Stable,” indicating a high level of safety and minimal credit risk. Investors in these NCDs can benefit from attractive coupon rates and secure investments backed by gold loan receivables. This Tranche II issue has a base size of ₹7,500 lakh, with a green shoe option of ₹17,500 lakh, bringing the total to ₹25,000 lakh.

The NCDs are set to open for subscription on October 11, 2024, with a closing date of  October 24, 2024, and will be listed on the Bombay Stock Exchange (BSE). The funds will help Muthoot Fincorp expand its loan portfolio, strengthen its financial position, and capitalize on growth opportunities in the NBFC sector.

As part of the Muthoot Pappachan Group, a diversified conglomerate with interests in finance, hospitality, and automotive services, Muthoot Fincorp has a legacy of trust and customer-centric financial services. Investors looking for steady returns in a secure and established company should consider this NCD issue as a viable investment option. However, as with all investments, prospective investors are encouraged to carefully review the prospectus and consult financial advisors before making any decisions.

This overview provides potential investors with the essential details needed to evaluate the Muthoot Fincorp Tranche II NCD offering.

Company Financial

Restated Summary Statement of Assets and Liabilities

Category As at June 30, 2024 As at June 30, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2022
ASSETS
Non-current assets
Property, Plant & Equipment 467.86 355.60 452.79 313.75 311.58
Right-of-use Assets 592.70 567.03 587.80 545.83 462.21
Goodwill 696.47 325.77 696.47 325.77 10.91
Other Intangible Assets 291.26 306.58 304.31 319.74 16.27
Investment in Associates 60.27 66.47 60.36 66.97 -
Financial Assets (Investments) 1,682.99 1,312.20 1,382.28 1,616.40 1,280.02
Other Financial Assets 96.22 109.93 94.89 80.54 57.30
Income Tax Assets 174.07 177.43 160.30 157.45 109.17
Other Assets 57.08 26.05 53.60 31.49 24.64
Total Non-current Assets 4,118.91 3,247.06 3,792.79 3,457.95 2,272.11
Current assets
Inventories 56.30 10.90 48.69 10.64 17.74
Financial Assets (Investments) 2,918.32 4,692.95 3,728.47 4,857.15 9,067.98
Trade Receivables 1,189.59 950.17 963.85 1,062.35 1,111.93
Cash and Cash Equivalents 836.49 1,220.26 887.05 832.52 1,096.13
Bank Balances Other than Cash 3.01 1.41 3.80 31.40 7.74
Other Financial Assets 906.96 734.71 826.80 651.87 319.85
Other Assets 311.66 329.42 277.97 376.77 512.25
Total Current Assets 6,222.33 7,939.81 6,736.63 7,822.70 12,133.63
Total Assets 10,341.24 11,186.87 10,529.42 11,280.65 14,405.74
EQUITY AND LIABILITIES
Equity
Equity Share Capital 3.81 2.66 3.01 2.66 0.86
Instruments Entirely Equity in Nature 15,090.76 15,562.54 15,573.26 15,562.54 15,562.54
Other Equity (7,649.58) (6,904.60) (7,784.81) (6,508.59) (3,296.49)
Total Equity 7,444.99 8,660.60 7,791.46 9,056.61 12,266.91
Non-current liabilities
Financial Liabilities (Borrowings) 154.61 - 95.98 - -
Lease Liabilities 470.88 477.34 467.06 444.58 408.67
Other Financial Liabilities 3.78 37.39 - 37.44 18.59
Contract Liabilities 28.77 - 29.01 - -
Provisions 40.34 38.76 39.11 38.49 27.72
Total Non-current Liabilities 698.39 553.50 631.16 520.51 454.98
Current liabilities
Financial Liabilities (Borrowings) 102.00 - 115.21 - -
Lease Liabilities 184.73 148.48 185.94 155.02 99.54
Trade Payables 989.47 879.94 880.90 873.17 956.14
Other Financial Liabilities 632.73 700.50 639.42 391.66 382.66
Contract Liabilities 16.18 28.36 20.93 35.04 22.69
Other Liabilities 189.41 133.27 185.67 166.69 162.22
Provisions 83.35 82.22 78.73 81.94 60.59
Total Current Liabilities 2,197.86 1,972.77 2,106.80 1,703.52 1,683.85
Total Liabilities 2,896.25 2,526.27 2,737.96 2,224.03 2,138.83
Total Equity and Liabilities 10,341.24 11,186.87 10,529.42 11,280.65 14,405.74

Statement of Profit and Loss

Category Three months ended June 30, 2024 Three months ended June 30, 2023 Year ended March 31, 2024 Year ended March 31, 2023 Year ended March 31, 2022
Income
Revenue from Operations 3,222.22 2,389.82 11,247.39 8,264.60 5,704.90
Other Income 87.89 119.83 386.96 449.86 414.88
Total Income 3,310.11 2,509.65 11,634.35 8,714.45 6,119.78
Expenses
Cost of Materials Consumed 7.77 14.36 61.08 72.00 51.05
Purchases of Stock-in-Trade 1,195.15 897.02 4,554.75 3,301.95 2,224.54
Changes in Inventories of Stock-in-Trade (7.55) (1.33) (11.63) 6.92 (7.55)
Employee Benefits Expense 589.19 485.78 2,012.16 2,129.82 1,708.49
Finance Costs 19.83 17.40 71.40 58.19 48.38
Depreciation and Amortisation Expense 121.67 91.30 420.59 285.79 170.09
Other Expenses
- Advertising and Sales Promotion 445.37 487.13 1,850.80 2,501.16 2,005.07
- Delivery and Related Charges 1,046.05 749.00 3,351.06 2,834.94 2,068.81
- Others 490.49 331.90 1,637.18 1,693.62 1,305.56
Total Expenses 3,907.96 3,072.56 13,947.38 12,884.40 9,574.45
Loss before Share of Loss of Associate, Exceptional Items, and Tax (597.85) (562.91) (2,313.04) (4,169.95) (3,454.68)
Share in Net Loss of Associate (0.09) (0.50) (6.61) (0.10) (1.02)
Loss before Exceptional Items and Tax (597.94) (563.41) (2,319.65) (4,170.05) (3,455.69)
Exceptional Items (13.07) (0.67) (30.59) (9.26) (173.20)
Loss before Tax (611.01) (564.08) (2,350.24) (4,179.30) (3,628.90)
Tax Expense
- Current Tax - - - - -
- Deferred Tax - - - - -
Total Tax Expense - - - - -
Loss for the Period/Year (611.01) (564.08) (2,350.24) (4,179.30) (3,628.90)
Other Comprehensive Income (OCI), Net of Tax
Items not Reclassified Subsequently to Profit/Loss 5.46 - 93.17 (9.59) -
- Re-measurement Gain/(Loss) on Defined Benefit Plans (0.23) 1.26 1.12 (3.28) (2.33)
Other Comprehensive Income/(Loss) for the Period/Year 5.22 1.26 94.29 (12.87) (2.33)
Total Comprehensive Loss for the Period/Year, Net of Tax (605.78) (562.83) (2,255.95) (4,192.17) (3,631.23)

Board of Directors of Company

Board of Directors for Muthoot Fincorp Limited

  1. Thomas John Muthoot – Managing Director
  2. Thomas George Muthoot – Director
  3. Thomas Muthoot – Executive Director
  4. Badal Chandra Das – Independent Director
  5. Ravi Ramchandran – Independent Director
  6. Preethi John Muthoot – Director
  7. Anthony Abraham Thomas – Independent Director
  8. A. P. Kurian – Independent Director
  9. Vikraman Ampalakkat – Independent Director

Company contact Details

Muthoot Centre,
TC No 27/3022, Punnen Road
Trivandrum 695 001, Kerala
Tel: +91 471 491 1550
Email: cs@muthoot.com​