Gujarati Club News: [Gujarati Club] Muthoot Finance Ltd Secured NCD

[Attachment(s) from nikhil vadia included below]

Dear All,

Please find attached herewith

1. Muthoot Company Highlights

2. Muthoot Secured NCD Details as under

Muthoot Finance Limited ("Secured NCDs")

ISSUE DETAILS :

Issue Date

Tuesday, August 23, 2011 - Monday, September 05, 2011, or with an option to close earlier and/or extend upto a period as may be determined by the Board

Issue Size

Base issue size of Rs. 500 Crores with an option to retain over-subscription upto Rs. 500 Crores for issuance of additional NCDs aggregating to a total of upto Rs. 1000 Crores.

Credit Rating-CRISIL

"CARE AA-/Stable"

Credit Rating-ICRA

"ICRA AA-(stable)"

Trustee

IDBI Trusteeship Services Limited

Interest on Application Money

@ 8% per anunum on application money on the amount allotted, subject to the deduction of Income Tax under the provisions of the Income Tax Act 1961, as amended, as applicable. The interest shall be payable from the date of realization of the cheque(s)/demand draft(s) or after 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue or the date of receipt of application by the Registrar to the Issue, as the case may be) whichever is later and upto one day prior to the Deemed Date of Allotment at the rate of 8%

Interest on Application Money which is liable to be refunded

@ 8% per anunum on application money which is liable to be refunded in accordance with the provisions of the Debt Regulations and/or the Companies Act, or other applicable statutory and/or regulatory requirements, subject to the deduction of Income Tax under the provisions of the Income Tax Act 1961, as amended, as applicable from the date of realization of the cheque(s)/demand draft(s) or after 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue or the date of receipt of application by the Registrar to the Issue, as the case may be) whichever is later and upto one day prior to the Deemed Date of Allotment at the rate of 8%

Series

I

II

III

Minimum Application

Rs. 5,000 (5 NCDs)
(for all options of NCDs, namely Options I, Option II, and Option III either taken individually or collectively)

Face Value/Issue Price - NCD

Rs. 1,000

In Multiples Of

Rs. 1,000 (1 NCD)

Coupon Rate (%) per annum

1) For NCD holders in Category I

11.75%

12.00%

12.00%

2) For NCD holders in Category II

12.00%

12.25%

12.25%

3) For NCD holders in Category III

12.00%

12.25%

12.25%

Effective Yield (%) (per annum)

1) For NCD holders in Category I

11.75%

12.00%

12.00%

2) For NCD holders in Category II

12.00%

12.25%

12.25%

3) For NCD holders in Category III

12.00%

12.25%

12.25%

Listing

NSE/ BSE

Tenor

24 months

36 months

60 months

Put / Call Option

None

Frequency of Interest Payment

Annual

Annual

Annual

An Applicant is allowed to make one or more applications for one or more Series of NCDs, subject to a minimum application size of Rs. 5,000 and in multiples of Rs. 1,000 thereafter, for each application.

INVESTOR CATEGORIES AND ALLOTMENTINVES

Category I
• Public financial institutions, statutory corporations, commercial banks, co-operative banks and regional rural banks, which are authorised to invest in the NCDs;
• Provident funds, pension funds, superannuation funds and gratuity fund, which are authorised to invest in the NCDs;
• Venture Capital funds registered with SEBI;
• Insurance Companies registered with the IRDA;
• National Investment Fund;
• Mutual Funds;

Category II
• Companies; bodies corporate and societies registered under the applicable laws in India and authorised to invest in the NCDS;
• Public/private charitable/religious trusts which are authorized to invest in the NCDs;
• Scientific and/or industrial research organizations, which are authorized to invest in the NCDs;
• Partnership firms in the name of the partners; and
• Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008
• Resident Indian individuals; and Hindu Undivided Families through the Karta (applying for NCDs aggregating to a value exceeding ` 500,000, across all series of NCDs, (Option I and/or Option II and/or Option III).

Category III*
The following persons/entities
• Resident Indian individuals; and
• Hindu Undivided Families through the Karta.
(applying for NCDs aggregating to a value not more than 500,000, across all series of NCDs, (Option I and/or Option II and/or Option III)

Foreign Institutional Investors, NRIs and Overseas Corporate Bodies are not permitted to apply in this Issue.

Applicants belonging to the Category I, will be allocated upto 15% of overall issue size.
Applicants belonging to the Category II will be allocated upto 25% of overall issue size.
Applicants belonging to the Category III will be allocated upto 60% of overall issue size.

Security of the Issue :

The Principal amount of the NCD'S to be issued in terms of this Prospectus together with all interest due on the NCD's, as well as all costs, charges, all fees, remuneration of Debenture Trustee and expenses payable in respect thereof shall be secured by way of First pari passu charge on the identified immovable property and a first pari passu charge on Current Assets, Book debts, Loans & Advances, and receivables including Gold Loan receivables, both present and future of the company.

The company will maintain security in favour of the Debenture Trustee for the NCD holders on the assets to ensure 100% security cover of the amount outstanding in respect of NCD's at any time.

Brief Introduction of the company :

Muthoot Finance Ltd. (MFL) is the largest gold finance company in India , in terms of Loan Portfolio, Branch presence as well as Market share, as per IMaCS report. Gold Loan Portfolio comprised appx. 4.7 Million loan accounts.

MFL has an operating history of over 70 years which lends it huge experience, skills and goodwill acquired by its Promoters. Coupled with strong entrepreneurial skills at operational levels their Gold AUM has increased by 82.42% in last 5 years.

Head quarter in Kerala, Muthoot Finance Ltd. is a non-banking Finance Company (NBFC) provides loan against household used gold jewellery and offers other products and services like money transfer, insurance, securities, foreign exchange, vehicle and asset finance services.

Financial Analysis of Last 5 years (Rs. In Crores)

2006-07

2007-08

2008-09

2009-10

2010-11

Revenue

234

369

620

1,089

2,316

Net Profit

44

64

98

228

494

Asset under Management (AUM)

1,420

2,179

3,300

7,341

15,728

No TDS, since applications are invited only in demat form & the issue is to be listed

Cheque / DD should be drawn in favour of "ESCROW ACCOUNT MUTHOOT FINANCE NCD PUBLIC ISSUE" by all applicants. It should be crossed "A/c Payee only"

Allocation will be on First come first serve basis, determined on the basis of date of receipt of each application duly acknowledged by the bankers to the issue.

Please write the sole/ first applicants name, phone no. and application no on the reverse of Chq/DD.

It's Expected to oversubscribe on 1st day itself. So Kindly contact us at the earliest & submit your forms on time.

For More Information, Forms Nearest Collection Centres, Kindly contact us

Thx & Regards
Nikhil Vadia - 98197 55658