Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on August 16, 2025
- This is the 20th offer from this company since February 2014.
• Last debt offer was in the month of April 2025.
• Issue rated as ICRA A/Stable. Such rating indicates low credit risk in servicing.
• This time it has reduced the coupon rates with continued credit rating.
• Investors looking for steady regular income may park moderate funds.
ABOUT COMPANY:
Muthoottu Mini Financiers Ltd. (MMFL) a Muthoottu Mini group company is a non-deposit taking systemically important NBFC in the gold loan sector lending money against the pledge of household gold jewellery (“Gold Loans”) in the state of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Haryana, Maharashtra, Gujarat, Delhi and Goa and the union territory of Puducherry.
The company also has microfinance loan segment wherein it provides unsecured loans to joint liability group of women customers (minimum of 5 persons) who require funds to carry out their business activities through few of its branches in the state of Kerala.
MMFL’s Gold Loan portfolio as on March 31, 2025, March 31, 2024, and March 31, 2023 comprises of 6,13,863 gold loan accounts, 5,57,249 gold loan accounts and 5,03,974 gold loan accounts, respectively, aggregating to Rs. 3812.56 cr., Rs. 3222.21 cr., and Rs. 3048.77 cr. which is 92.06%, 91.47% and 93.44% of its total loans and advances as on such specific dates.
The company, as on June 30, 2025, had a network of 958 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Haryana, Maharashtra, Gujarat, Uttar Pradesh and Goa and the union territories of Puducherry and Delhi and employ 5421 persons in its business operations.
ISSUE DETAILS:
MMFL is coming out with its 20th debt offer of 3000000 secured, redeemable, non-convertible debentures of face value of Rs.1000 each. The company is issuing NCDs aggregating up to Rs. 200 crores with an option to retain oversubscription up to Rs. 100 crores thus making overall issue sizes of Rs. 300 crores. Issue opens for subscription on August 18, 2025, and will close on or before September 01, 2025. Minimum application is to be made for 10 NCDs (i.e., Rs. 10000) and in multiple of 1 NCD (i.e., Rs 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE.
This issue is being made for the purpose of onward lending and for repayment of interest and principal of existing loans (at least 75%) and also for general corporate fund needs (up to 25%). MMFL is spending Rs. 6.78 cr. for mobilizing Rs. 300 cr. The company has allocated 30% for Institutional investors, 30% for Non-institutional Investors, 30% for HNI Investors and 10% for Retail investors.
This debt offer is jointly lead managed by Vivro Financial Services Pvt. Ltd. and Tipsons consultancy Services Pvt. Ltd. MitconCredentia Trusteeship Services Ltd. is the debenture trustee while MUFG Intime India Pvt. Ltd. is the registrar to the issue.
This issue has tenure of 18 months, 24 months, 36 months, and 60 months. It is offering coupon rates ranging from 9.00% to 10.50%. Interest payments mode is Monthly, or Annually as per the choice of investors. The company has reduced the coupon rates for this debt offer.
CREDIT RATING:
Issue is rated ICRA A/Stable by ICRA Ltd. It indicates that instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations and carry low credit risk. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions. The rating given by ICRA is valid as on the date of this Prospectus and shall remain valid on date of the issue and allotment of NCDs and the listing of the NCDs on BSE. These ratings are subjected to a periodic review during which it may be affirmed, changed, suspended, withdrawn, or placed on rating watch, based on one or more specific events.
FINANCIAL PERFORMANCE:
For the last three fiscals, MMFL has posted total income/net profit of Rs. 430.25 cr. / Rs. 46.29 cr. (FY22), Rs. 544.44 cr. / Rs. 67.28 cr. (FY23), Rs. 671.84 cr. / Rs. 77.83 cr. (FY24), and Rs. 815.15 cr. / Rs. 94.18 cr. (FY25). The company continued to mark steady growth in its top and bottom lines for the reported periods.
As of March 31, 2025, its Net NPAs stood at 0.50% against 0.72% for FY24. Its current debt equity ratio of 5.17 as of March 31, 2025, will stand enhanced to 5.55 post this issue.
Conclusion / Investment Strategy
This is a frequent debt market visitor company bringing its 20th offer since February 2014. This time it has given the mandate to two lead managers. For this issue it has lowered the coupon rates with maintained credit rating. Investors looking for steady income may park moderate funds.
Review By Dilip Davda on August 16, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
