Muthoot Finance Limited NCD (Muthoot Finance NCD Dec 2011) Detail

December 22, 2011 - January 7, 2012

Incorporated in 1997, Muthoot Finance Ltd is the Kerala - based largest gold financing company in India in terms of loan portfolio. Muthoot Finance provides personal and business loans secured by gold jewellery, or Gold Loans. They have 1605 branches across 20 states and two union territories in India.

Customers of Muthoot Finance are typically small businessmen, vendors, traders, farmers and salaried individuals. They provide retail loan products, primarily comprising Gold Loans. They also disburse other loans, including those secured by Muthoot Gold Bonds. Their Gold Loans have a maximum 12 month term. Other then Gold Loans business, they provide money transfer services through their branches as sub-agents of various registered money transfer agencies. Company also operates three windmills in the state of Tamil Nadu.

Muthoot Finance is coming up with a public issue of Secured Non-Convertible Debentures of face value of Rs. 1,000 each, (NCDs), aggregating upto Rs. 300 Crores with an option to retain over-subscription upto Rs. 300 Crores for issuance of additional NCDs aggregating to a total of upto Rs. 600 Crores.

Public issue of Muthoot Finance NCD will remain open from Dec 22, 2011 to Jan 07, 2012. Minimum order quantity for Muthoot NCD is 5 NCDs (Rs 5000) and after that in multiples of 1 NCD (Rs 1000).

The NCD is available for 4 tenors - 24 months, 36 months, 60 months and 66 months. The coupon rate for this NCD is fixed at 13.00% to 13.43% based on the tenors of the NCD. Redemption amount will be repayment of the Face Value plus any interest that may have accrued at the Redemption Date.

The Issue is rated by CRISIL and ICRA with AA-/Stable rating. ICICI Securities Limited, A.K. Capital Services Limited HDFC Bank Limited and Karvy Investor Services Limited are the Lead Managers for this issue.

Muthoot Finance NCD Dec 2011 Detail

Issue Open	December 22, 2011 - January 7, 2012
Security Name	Muthoot Finance Limited
Security Type
Issue Size (Base)	Rs 300.00 Crores
Issue Size (Shelf)	Rs [.] Crores
Issue Price	Rs 1000 per NCD
Face Value	Rs 1000 each NCD
Minimum Lot size	5 NCD
Market Lot	1 NCD
Listing At	BSE
Credit Rating
Tenor
Series
Payment Frequency
Basis of Allotment	First Come First Serve Basis

NCD Allocation Ratio

Category	NCD's Allocated
Category 1	0%
Category 2	0%
Category 3	0%

Company Promoters

The following individuals are the Promoters of the Company:

1. M.G. George Muthoot;
2. George Thomas Muthoot;
3. George Jacob Muthoot; and
4. George Alexander Muthoot

Company Financials

Particulars	For the year/period ended (in Rs. Millions)
	31-Mar-11	31-Mar-10	31-Mar-09	31-Mar-08	31-Mar-07	31-Mar-06
Total Income	22,983.00	10,775.00	6,204.02	3,686.38	2,339.65	1,480.62
Profit After Tax (PAT)	4,942.00	2,275.75	977.20	635.97	439.79	271.27

Objects of the Issue

The funds raised through this NCD will be utilised for various financing activities including:

1. Lending and investments,
2. To repay existing liabilities or loans and
3. Towards business operations including for capital expenditure and working capital requirements, after meeting the expenditures of and related to the Issue.