Muthoot Finance NCDs at 13-13.25% – Details
Gold loan company Muthoot Finance Ltd has come up with a issue of secured,non-convertible debentures aggregating upto Rs.2500/- million and option to retain the oversubscription upto Rs 2500 millions for issuance of additional NCDs aggregating upto total of Rs 5000/- millions.
- Investors have four options to choose from. The tenor across the options is in the range of 2-5.5 years and the interest offered is in the range of 13-13.25% per annum. All options offer annual interest payment except option 4, which offers to double your principal, taking your effective yield to 13.43% per annum.
- The interest earned is taxable. For the highest tax bracket (30.90%), post-tax returns will be 8.98-9.28% per annum. For the lowest tax bracket (10.30%), they will be between 10.30% and 12.05% per annum.
- A unique feature is that you will get a 13% interest on the refunded application money.
- NCDs are to be issued compulsorily in dematerialized form and will be listed and traded on BSE.
Interest rate annual : 13%, 13.25% and 13.25% for 2, 3 and 5 years respectively
Cumulative Option : Double money in 5 ½ Years
Minimum Investment : Rs.5000 and multiples of Rs.1000 thereafter.
Closing Date : 17th March, 2012
Allotment on first come first serve basis.
Draft prospectus is available at here.
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March 3, 2012