Muthoottu Mini Financiers announces Public Issue of Secured NCDs to raise up to ₹200 Crore

Muthoottu Mini Financiers Limited (Muthoottu Mini Financiers), has announced the launch of a public issue of its secured, redeemable non-convertible debentures ("NCDs") with a face value of ₹1,000 each. The issue comprises a base size of ₹100 crore with an option to retain over-subscription up to ₹100 crore, aggregating to a total of ₹200 crore.

The NCD issue opens on Wednesday, April 23, 2025, and is scheduled to close on Wednesday, May 7, 2025*, with the possibility of early closure as may be determined by the Board of Directors of the Company or the Debenture Committee, subject to requisite approvals and in accordance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021. The NCDs are proposed to be listed on BSE Limited, which will serve as the designated stock exchange for the issue.

Muthoottu Mini Financiers' NCDs will offer effective annualised interest rates ranging from 9.50% to 10.75%, under its Series II to Series VI, depending on the tenor selected.** Tenor options include 18 months under Series I with cumulative interest payment, 24 months under Series II with monthly interest payment, 36 months under Series III with monthly interest payment, 48 months under Series IV with monthly interest payment, 60 months under Series V with monthly interest payment and 60 months under Series VI with annual interest payment. Proceeds from the issue will be deployed toward onward lending, repayment or prepayment of principal and interest on existing borrowings, and for general corporate purposes.

The NCD issue has been rated 'ICRA A (Stable)' by ICRA Limited which rating shall remain valid on date of the issue and allotment of the NCDs.

With its registered and corporate office at 65/623-K, Muthoottu Royal Towers, Kaloor, Kochi, Kerala, Muthoottu Mini Financiers provides a variety of gold loan schemes to suit customers individual needs. The company's core business focuses on gold loans, whereby the customers pledge their gold ornaments and its technology helps reduce the time it takes to complete gold loan transactions. Beyond gold loans, Muthoottu Mini Financiers also offers other financial services such as insurance agent services, money transfer services, and depository participant services. Muthoottu Mini Financiers also extends microfinance loans, primarily targeting women-led joint liability groups in rural and semi-urban areas of Kerala.

As of December 31, 2024, Muthoottu Mini Financiers operates through a network of 921 branches across 10 states and the union territories of Delhi and Puducherry, serving a customer base that continues to grow. As on December 31, 2024, the Company had 5,335 employees.

Over the past three fiscal years (commencing from 2022 till 2024), Muthoottu Mini Financiers has demonstrated growth in both its Assets Under Management (AUM) and Profit After Tax (PAT). As on December 31, 2024, the Company maintained 5,98,002 gold loan accounts aggregating to 3,51,650.71 lakh and 84,003 microfinance loan accounts , aggregating to ₹ 29,618.21 lakh.

The company has also satisfied the minimum capital adequacy ratios prescribed by RBI, with capital to risk weighted adequacy ratio (CRAR) standing at 23.53%, 23.86%, 22.81% and 21.65% as of December 31, 2024, March 31, 2024, March 31, 2023 and March 31, 2022, respectively. The Gross Non-Performing Assets (GNPA) remained at 0.61% in FY 2022, 0.43% in FY 2023, 0.88% in FY 2024 and 1.22% in December 31, 2024.

Source : Equity Bulls

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MuthoottuMiniFinanciers FundRaising Secured NCDs