By The Connect

August 20, 2021

Now Open: Secured & Unsecured NCDs Of Face Value Of Rs. 1,000

NBFC Muthoottu Mini targets to raise up to Rs 250 cr for further lending and clearing own loans

MUMBAI/KOCHI, Aug 20 (The CONNECT) – Non-deposit taking gold loan NBFC Muthoottu Mini Financers Limited (MMFL) said its public issue of Secured and Unsecured Debentures (NCDs) of the face value of Rs. 1,000 each is now open.

The 15th NCD Issue has a base issue size of Rs. 125 crores, with an option to retain over-subscription up to Rs. 125 crores. The NCD Issue offers various options for subscription of NCDs with coupon rates ranging from 8.75% – 10.00% p.a. The NCD Issue opened on August 18, 2021 and closes on September 09, 2021, with an option of early closure or extension.

As on 31st March 2021, MMFL had 3,86,110 gold loan accounts, predominately from rural and semi urban areas, aggregating to Rs. 1,935.10 crores which accounted for 97.04% of its total loans and advances. The yield on its gold assets during the last three fiscals have increased from 19.17% in FY2019 to 19.57% as on FY2021. Its net Non-Performing Assets for FY2021 stood at 0.75%, which is lower from 1.39% reported in the FY2019.

It also offers micro finance loan, depository participant, money transfer, insurance broking, 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, Chairwoman & Whole-time Director and Mathew Muthoottu, Managing Director.

Net proceeds of the Issue will be utilized for onward lending, financing, and for repayment and prepayment of principal and interest on borrowings of the Company (at least 75%) and the rest (up to 25%) for general corporate purposes.

The Secured and Unsecured NCDs offered through Prospectus dated August 13, 2021 are proposed to be listed on the BSE. The Lead Manager to the Issue is Vivro Financial Services Private Limited. MITCON Trusteeship Services Limited is the Debenture Trustee and Link Intime India Private Limited is the Registrar to the Issue.

Muthoottu Mini Financiers Limited is an RBI registered non-deposit taking systemically important NBFC in the loan against gold financing sector, lending money against the pledge of household gold jewellery for over 2 decades. As on June 30, 2021 the Company had a network of 807 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 3,117 persons in its business operations.