Muthoottu Mini Financiers Announces Non-Convertible Debentures to Raise up to INR 150 Crore

Funds raised to be directed inter alia towards onward lending, repayment/prepayment of borrowings and general corporate purposes

Muthoottu Mini Financiers Limited (Muthoottu Mini Financiers), has announced the launch of public issue of its secured, Non-Convertible Debentures (“NCDs”) with a face value of INR 1000 each. The issue has a base size of INR 100 crore, with an option to retain oversubscription up to ₹50 crore, aggregating up to ₹150 crore.

The NCD issue opens on 30 October 2024 and will remain open until November 13, 2024, with an option for early closure, as may be decided by the Board of Directors of our Company or the Debenture Committee, subject to approvals 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 is also the designated stock exchange for the issue.

Muthoottu Mini Financiers’ NCDs will be available with effective annualised interest rates ranging from 8.84% to 10.5% depending on the category and tenor chosen. The tenors offered are 450 days, 26 months, 36 months, and 48 months and 66 months. The funds from the issue will be used for onward lending, financing, and for repayment/prepayment of principal and interest on borrowings of the company, and for general corporate purposes.

NCDs have been rated ‘CARE A- Stable’ by CARE Ratings Limited, reflecting an adequate degree of safety and low credit risk.

With its registered office and corporate office in Kochi, Kerala, Muthoottu Mini Financiers offers flexible gold loan schemes that offers to its customers and efficient customer service depending on the individual needs. Its primary product is gold loans, providing a quick and convenient way for individuals to access funds by pledging their gold. In addition to gold loans, Muthoottu Mini also provides various other financial services, including insurance agent services to help customers secure their assets, money transfer services for seamless transactions, and depository participant services. The company also extends microfinance solutions, supporting joint liability group of women entrepreneurs in underserved regions. These products are designed to cater to a broad customer base, especially in rural and semi-urban areas in Kerala.

Muthoottu Mini Financiers currently operates through 920 branches across 10 states and union territories of Delhi and Puducherry, in India, serving to 5,62,188 customers as on September. With a workforce of 4,600+ employees, the company continues to expand its presence, particularly in rural and semi-urban areas. In FY24, Muthoottu Mini had a total AUM of INR 3,522.77 crore and recorded a Profit After Tax (PAT) of INR 77.83 crore. The NCDs are rated CARE A- Stable by CARE Ratings, indicating adequate degree of safety regarding timely servicing of financial obligations and low credit risk.

As of March 31, 2024, Muthoottu Mini Financiers reported a total of 5,57,249 gold loan accounts, primarily from rural and semi-urban areas, amounting to INR 3222.21 crore. This represents approximately 91.47% of its total loans and advances. The yield on its gold loan assets for Fiscal 2024 was at 18.12%.

Over the past three fiscal years, Muthoottu Mini Financiers has demonstrated steady growth in both its Assets Under Management (AUM) and Profit After Tax (PAT). The AUM increased 41% from ₹2,498.60 crore in FY 2022 to ₹3,523 crore in FY 2024, while PAT grew by 68% from ₹ 46.29 crore to ₹77.83 crore during the same period. This growth reflects robust demand for its financial products, efficient cost management, and strong revenue performance, primarily driven by its core gold loan segment. The company has also maintained a Capital Adequacy Ratio (CAR) consistently above the regulatory requirement, standing at 23.86% as of March 31, 2024, reflecting a stable capital structure. Despite slight variations, the Gross Non-Performing Assets (GNPA) remained at 0.61% in FY 2022, 0.43% in FY 2023, and 0.88% in FY 2024.