Muthoottu Mini Financiers Announces Public Issue of Rs 150 Crore in Secured NCDs

Muthoottu Mini Financiers has introduced a public issue of secured, non-convertible debentures (NCDs) with each having a face value of Rs 1,000. The base size of this issue is Rs 100 crore, with the option to retain oversubscription up to Rs 50 crore, totalling Rs 150 crore. The NCDs will be available from Wednesday and will close on November 13, unless an early closure is decided by the Board or debenture committee, following Sebi guidelines.

Representative image

The NCDs offer effective annualised interest rates between 8.84% and 10.5%, depending on the category and duration selected. Available tenors include 450 days, 26 months, 36 months, 48 months, and 66 months. The funds raised will be utilised for onward lending, financing, repayment or prepayment of principal and interest on borrowings, and general corporate purposes. These NCDs are planned to be listed on the BSE.

Financial Performance and Offerings

In the fiscal year FY24, Muthoottu Mini Financiers reported total assets under management (AUM) of Rs 3,522.77 crore and a profit after tax (PAT) of Rs 77.83 crore. The company provides flexible gold loan schemes tailored to meet individual customer needs efficiently. Additionally, it offers microfinance solutions supporting women entrepreneurs in underserved areas through joint liability groups.

Muthoottu Mini Financiers primarily serves rural and semi-urban regions in Kerala with its diverse range of financial products. These offerings are designed to cater to a broad customer base, ensuring access to financial services for those in less accessible areas.

The company's commitment to customer service is evident in its adaptable gold loan schemes and microfinance initiatives. By focusing on individual needs and supporting entrepreneurial ventures among women, Muthoottu Mini Financiers aims to foster economic growth in these communities.

This strategic approach not only enhances financial inclusion but also contributes to the overall development of rural and semi-urban areas in Kerala. The company's efforts align with its mission to provide efficient financial solutions that address the unique challenges faced by its customers.