Muthoot Fincorp Limited is launching its Tranche V of Secured, Redeemable Non-Convertible Debentures (NCDs) from April 29 to May 13, 2025. A reputed NBFC, Muthoot Fincorp is primarily engaged in providing gold loans and other financial services. These NCDs offer up to 10% interest and are available across 12 series with tenure options ranging from 24 to 72 months, and with monthly, annual, or cumulative interest payouts. Should you invest in Muthoot Fincorp NCD – April-2025? This review provides detailed information, key features, interest rates, risk factors, and whether you should consider investing.
About Muthoot Fincorp Limited
Founded in 1997, Muthoot Fincorp is a non-deposit-taking NBFC registered with the RBI. It focuses on providing personal and business loans secured by gold jewellery. The company had over 33.79 lakh active gold loan accounts as of September 30, 2024, and operated 3,736 branches across 25 states, employing 26,723 staff.
The promoters are Thomas John Muthoot, Thomas George Muthoot, and Thomas Muthoot.
Muthoot Fincorp NCD April 2025 – Issue Highlights
- Issue Opens: April 29, 2025
- Issue Closes: May 13, 2025
- Type: Secured, Redeemable, Non-Convertible Debentures
- Issue Size: ₹100 Cr (base), up to ₹150 Cr (oversubscription), total ₹250 Cr
- Face Value / Issue Price: ₹1000 per NCD
- Minimum Investment: 10 NCDs (₹10,000)
- Listing: BSE
- Allotment Basis: First Come First Serve
- Debenture Trustee: Vardhman Trusteeship Pvt Ltd
Allocation Ratio:
- Institutional: 5%
- Non-Institutional: 25%
- HNI: 25%
- Retail: 45%
Coupon Rates & Tenure Details (Series I – XII)
| Series | Tenure | Frequency | Coupon (%) | Effective Yield (%) | Maturity Amount (₹.) |
|---|---|---|---|---|---|
| I | 24M | Monthly | 9.00% | 9.38% | 1,000 |
| II | 36M | Monthly | 9.25% | 9.65% | 1,000 |
| III | 60M | Monthly | 9.45% | 9.87% | 1,000 |
| IV | 72M | Monthly | 9.55% | 9.97% | 1,000 |
| V | 24M | Annual | 9.40% | 9.40% | 1,000 |
| VI | 36M | Annual | 9.65% | 9.64% | 1,000 |
| VII | 60M | Annual | 9.90% | 9.89% | 1,000 |
| VIII | 72M | Annual | 10.00% | 10.00% | 1,000 |
| IX | 24M | Cumulative | NA | 9.40% | 1,196.84 |
| X | 36M | Cumulative | NA | 9.65% | 1,318.67 |
| XI | 60M | Cumulative | NA | 9.90% | 1,603.62 |
| XII | 72M | Cumulative | NA | 10.00% | 1,772.02 |
Credit Rating
These NCDs are rated CRISIL AA-/Stable, indicating a high degree of safety regarding timely servicing of financial obligations and a very low credit risk.
Company Financials (Consolidated, ₹ in Crores)
| Year Ended | Revenue | Profit After Tax | Assets | Net Worth |
|---|---|---|---|---|
| Mar 2022 | 4,355.13 | 412.55 | 28,422.34 | 3,731.16 |
| Mar 2023 | 5,151.33 | 646.42 | 32,134.61 | 4,257.18 |
| Mar 2024 | 6,584.52 | 1,047.98 | 38,704.14 | 5,796.46 |
Why Should You Invest?
- Attractive Yield: Effective annual returns up to 10%, higher than many FDs.
- Secured Instrument: Backed by the company’s assets, ensuring repayment priority.
- Strong Track Record: Steady profit growth and expansion in branches and operations.
- Trusted Brand: Part of the established Muthoot Pappachan Group.
Risk Factors to Consider
- Interest Rate Risk: Rising interest rates can impact demand and pricing of NCDs.
- NBFC-Specific Risks: Sector prone to liquidity and regulatory challenges.
- Regulatory Overhang: RBI inspections and future directives may impact operations.
- Business Dependency: Heavy reliance on gold loan segment and availability of capital.
- Credit Rating May Change: Ratings may be revised based on future performance.
Refer to the NCD prospectus for complete risk disclosures.
Muthoot Fincorp NCD – April-2025 – Should You Invest?
Muthoot Fincorp’s April 2025 NCDs offer competitive returns and the backing of a well-known NBFC with strong financials. However, investors must be aware of risks tied to NBFCs, such as delays or defaults that have occurred with some peers in the past.
Suitable for high-risk appetite investors seeking regular or cumulative income with a moderately high credit rating. Consider aligning the investment tenure with your financial goals.
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