Muthoottu Mini Finance NCD Review

Muthoottu Mini Finance NCD

The non-govt financial company was incorporated in the year 1998, registered under the companies act. The non-banking financial company is basically a gold loan sector lending money against the household gold jewelry in the state of Kerala, Tamil Nadu, Haryana, Maharashtra etc. The company is going to issue NCD (Non-convertible debenture) soon in this year. The article contains entire information regarding Muthoottu Mini Finance NCD Review along with issue details, company summary, the objective of the issue, etc,

About Muthoottu Mini Finance NCD Issue Details

  • The issue opens on- Mar 18, 2019
  • The issue close on- April 16, 2019
  • Issue Type: Secured, Redeemable, Non-convertible debenture
  • Face value: Rs. 1000 Per NCD
  • Issue size: NCD’s of Rs. 100.00 Cr
  • Issue size: Rs. 100.00 Crore
  • Issue price: Rs. 1000 Per NCD
  • Market lot: 1 NCD
  • Listing At: BSE
  • Minimum order quantity: 10 NCD
  • DRHP: Click here

Objectives of Issuing NCD

  • One of the basic objectives of issuing the NCD is onward lending.
  • The second most important purpose of the issue is repayment of interest and principal of existing loans.
  • General corporate purposes like enhancing the brand image, advertising.
  • It wants to raise its funds without raising the company’s equity capital.

About Muthoottu Mini Finance

  • The locations of the company’s gold loan sector are situated at Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Haryana, Maharashtra, Delhi and Goa and the union territory of Puducherry.
  • In the financial year 2017, the company has started microfinance lending wherein they provide unsecured loans to joint liability group of women customers (who required funds to carry out their business in the state of Kerala).
  • As per the data of their Gold loan portfolios (as on September 30, 2018,
    March 31, 2018, March 31, 2017, and March 31, 2016) comprises of 96.35%, 95.31%, 99.01% and 99.60% of the total loans and advances.
  • The company belongs to the Muthoottu Mini group which is under Muthoottu family of Kozhencherry, founded by Ninan Mathai Muthoottu.
  • Their gold loans customers include primarily from rural and semi-urban areas.
  • In order to avail a loan from us, the company focus on repaid on the spot approval and disbursement of loans with minimal procedural formalities which customers need the most to complete.
  • Their advanced web-based centralized IT platform which records details of all branches also handle management of the relevant loan and pledged gold related information.
  • According to the six month period ended on September 30, 2018, and the Financial Years 2018, 2017 and 2016, the company’s total income was 15,317.38 lakhs, 33,493.39 lakhs, 43,546.42 lakhs, and 39,114.39 lakhs, respectively.
  • Net Revenues from their Gold Loan business constituted 93.53%, 94.85%, 98.01%, and 98.14%, respectively, of the total income.

Products of the Company

The products of the company include:

  • Gold Loans
  • Micro Finance Loans
  • Money Transfer Business
  • Insurance
  • DP services
  • Broking Services
  • Prepaid Transaction/Payment management services
  • Travel Agency services
  • PAN card related services
Muthoottu Mini Finance

Company Strength

  • The non-deposit-taking systematically important NBFC in the gold loan sector in south India with a large customer base and long operating history.
  • Efficient customer service and flexible loan schemes.
  • In south India, their extensive branch network across semi-urban and rural areas.
  • Established process and advanced technology system.
  • The company’s strong support system includes appraisal, internal audit, inventory control, and safety system.
  • Skilled personnel and experienced management team.

Company Strategies

  • In order to tap into the potentially large market for gold loans, further growth in gold loans business in rural and semi-urban markets is required.
  • They are planning to diversify their business into microfinance and loan segments.
  • In order to diversify their revenue stream by leveraging branch network and
    customer base, they undertake new business initiatives.
  • To have an error less streamlined growth in business, strengthing their risk management is required.

Registered Office

Address- 2/994, Muthoottu Buildings, Kozhencherry,

Pathanamthitta – 689 641,

at Kerala, India.

Company Management

Chairman and Wholetime Director: Nizzy Mathew

Managing Director: Mathew Muthoottu

Independent Director: Thomas Cherian

Independent Director: Krishnakumar K. R

Additional Director: Rajagopal M. S.

Financial Statement

Muthoottu Mini Finance NCD Review

According to the six months period ending on September 30, 2018, and for the FY ended March 31, 2018, March 31, 2017, and March 31, 2016, the average loan amount advanced by the company was 35,846, 37,767, 37,597 and 34,719
per loan transaction. Their Gold Loan products mix varies from 30 days up to 270 days tenure with varying rates of interest and amount of loan to suit the requirements of the customers. For the six month period ending on
September 30, 2018, and for the Financial Years ended March 31, 2018, March 31, 2017, and March 31, 2016, the company’s yield on Gold Loan assets was 18.69%, 18.18%, 22.20%, and 20.95%, respectively.

Muthoottu Mini Finance NCD Review

The above statement is derived from the company prospectus (draft red herring prospectus). It reflects the company had such a fluctuating profit over the years. Below the statement, we provide the entire details of the fianancial statement of the company. Basically, in this fluctuating state of the company, it is advisable not to invest in it. Muthoottu Mini Finance NCD Review carries a NEGATIVE view. Investors may apply but at their own risk as it is an avoidable investment.

Muthoottu Mini Finance NCD Review

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