| Muthoot Mercantile has announced a public issue of secured, redeemable, non-convertible debentures (NCDs) to raise Rs 100 crore. The issue has a base size of Rs 50 crore and a greenshoe option of another Rs 50 crore.
Investors can subscribe to the NCDs for a minimum of Rs 10,000 (10 NCDs) with a face value of Rs 1,000 each. The NCDs are offered in Series I to XI and come with a credit rating of IND BBB/Stable by India Ratings & Research, indicating moderate credit quality with a stable outlook. Effective annual yield for NCDs ranges from 10.34% p.a. to 11.73% p.a.
Investors can choose from a variety of tenors including 367 days, 18 months, 24 months, 36 months, 60 months, and 75 months. Interest payouts can be received monthly or cumulatively. The allotment of NCDs will be done on a first-come, first-served basis.
The funds raised will be used for onward lending and financing activities, repayment of existing borrowings, and general corporate purposes.
The NCDs will be listed on the BSE for trading after allotment. The allotment of NCDs will be done on a first-come, first-served basis.
Muthoot Mercantile, a Kerala-based non-deposit taking NBFC, operates in the gold loan sector. They provide loans by accepting household and used gold jewelry as collateral ("Gold Loan"). These loans primarily target retail customers who need immediate funds but lack access to formal credit. Additionally, Muthoot Mercantile offers unsecured personal loans ("Pronote Loan") to individual customers.
As of 31 March 2024, the company boasts a network of 242 branches across nine states and one union territory in India. These include Tamil Nadu, Kerala, Delhi, Haryana, Maharashtra, Madhya Pradesh, Odisha, Punjab, Uttar Pradesh, and Rajasthan. They employed 830 individuals as of the same date.
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