MUTHOOT FINANCE L Aug 2014).pdf Muthoot Finance Limited, a public limited company incorporated under

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Transcript of MUTHOOT FINANCE L Aug 2014).pdf Muthoot Finance Limited, a public limited company incorporated under

  • Prospectus August 11, 2014

    MUTHOOT FINANCE LIMITED Our Company was originally incorporated as a private limited company on March 14, 1997 under the provisions of the Companies Act, 1956 with corporate identity number L65910KL1997PLC011300,

    er 18, 2008 with the name 02, 2008 from the Registrar of

    Companies, Kerala and Lakshadweep. For further details regarding changes to the name and registered office of our Company, 99.

    Registered and Corporate Office: Muthoot Chambers, Opposite Saritha Theatre Complex, 2nd Floor, Banerji Road, Kochi 682 018, India. Tel: (91 484) 239 4712; Fax: (91 484) 239 6506; Website: www.muthootfinance.com; Email: ncd@muthootgroup.com.

    Company Secretary and Compliance Officer: Maxin James; Tel: (91 484) 353 5533; Fax: (91 484) 239 6506; E-mail: cs@muthootgroup.com EMABLE NON-CONVERTIBLE DEBENTURES AND UNSECURED

    REEDEMABLE NON-CONVERTIBLE DEBENTURES OF FACE VALUE OF `̀ 1,000 `̀ 2,000 MILLION WITH AN OPTION TO RETAIN OVER-SUBSCRIPTION UPTO `̀ 2,000 MILLION FOR ISSUANCE OF ADDITIONAL NCDS AGGREGATING TO A TOTAL OF UPTO `̀ 4,000 MILLION,

    -CONVERTIBLE DEBENTURES WILL BE IN THE NATURE OF SUBORDINATED DEBT AND WILL BE ELIGIBLE FOR TIER II CAPITAL.

    PROMOTERS : M G GEORGE MUTHOOT, GEORGE ALEXANDER MUTHOOT, GEORGE THOMAS MUTHOOT, GEORGE JACOB MUTHOOT GENERAL RISK

    Investors are advised to read the Risk Factors carefully before taking an investment decision in the Issue. For taking an investment decision, the investors must rely on their own examination of the Issuer and the Issue including the risks involved. Specific attention of the investors is invited to the Risk Factors on pages 10 to 33. This document has not been and will not be approved by any regulatory authority in India, including the Securities and Exchange Board of India, the Reserve Bank of India or any stock exchange in India.

    The Issuer, having made all reasonable inquiries, accepts responsibility for, and confirms that this Prospectus contains all information with regard to the Issuer and the Issue, which is material in the context of the Issue, that the information contained in this Prospectus is true and correct in all material respects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect.

    CREDIT RATING The Secured NCDs proposed to be issued under this Issue have been rated [ICRA]AA-/Stable by ICRA for an amount of upto ` 4,000 million vide its letter dated July 25, 2014. The Unsecured NCDs proposed to be issued under this Issue have been rated [ICRA]AA-/Stable by ICRA for an amount of upto ` 4,000 million vide its letter dated July 25, 2014. The rating of the Secured NCDs and Unsecured NCDs by ICRA indicates high degree of safety regarding timely servicing of financial obligations. The rating provided by ICRA may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions. Please refer to pages 317 to 325 for rating letter and rationale for the above rating.

    LISTING The NCDs offered through this Prospectus are proposed to be listed on BSE. Our Company has obtained an - BSE vide the letter dated August 08, 2014. For the purposes of the Issue, BSE shall be the Designated Stock Exchange.

    COUPON RATE, COUPON PAYMENT FREQUENCY, MATURITY DATE, MATURITY AMOUNT & ELIGIBLE INVESTORS For details relating to Coupon Rate, Coupon Payment Frequency, Maturity Date and Maturity Amount of the NCDs, see section tit starting on page 196 of this Prospectus on page 46.

    LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE DEBENTURE TRUSTEE

    ICICI SECURITIES LIMITED

    H.T. Parekh Marg, Churchgate Mumbai 400 020, India Tel: (91 22) 2288 2460 Fax: (91 22) 2282 6580 Email: muthoot.ncd2014@icicisecurities.com Investor Grievance Email: customercare@icicisecurities.com Website: www.icicisecurities.com Contact Person: Payal Kulkarni / Manvendra Tiwari SEBI Registration No.: INM000011179

    LINK INTIME INDIA PRIVATE LIMITED C-13, Pannalal Silk Mills Compound L.B.S. Marg, Bhandup (West) Mumbai 400 078, India Tel: (91 22) 2596 7878 Fax: (91 22) 2596 0329 Email: mfl7.ncd@linkintime.co.in Investor Grievance Email: mfl7.ncd@linkintime.co.in Website: www.linkintime.co.in Contact Person: Dinesh Yadav SEBI Registration No.: INR000004058

    IDBI TRUSTEESHIP SERVICES LIMITED Asian Building, Ground Floor 17 R, Kamani Marg, Ballard Estate Mumbai 400 001, India Tel: (91 22) 4080 7000 Fax: (91 22) 6631 1776 Email: abhishek@idbitrustee.com Website: www.idbitrustee.co.in Contact Person: Abhishek Javadekar SEBI Registration No.: IND000000460

    ISSUE PROGRAM* ISSUE OPENS ON AUGUST 18, 2014 ISSUE CLOSES ON SEPTEMBER 18, 2014 * The subscription list shall remain open at the commencement of banking hours and close at the close of banking hours for the period as indicated, with an option for early closure or extension by such period, as may be decided by the Board or the duly authorised committee of the Board constituted by resolution of the Board dated July 25, 2011. In the event of such early closure of or extension subscription list of the Issue, our Company shall ensure that notice of such early closure or extension is given to the prospective investors through an advertisement in a leading daily national newspaper on or before such earlier date or extended date of closure. Applications Forms for the Issue will be accepted only from 10:00 a.m. till 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE, on Working Days during the Issue Period. On the Issue Closing Date, Application Forms will be accepted only from 10:00 a.m. till 3.00 p.m. (Indian Standard Time) and uploaded until 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE.

    IDBI Trusteeship Services Limited has by its letter dated July 23, 2014 given its consent for its appointment as Debenture Trustee to the Issue and for its name to be included in this Prospectus and in all the subsequent periodical communications sent to the holders of the Debentures issued pursuant to this Issue.

    A copy of the Prospectus shall be filed with the Registrar of Companies, Kerala and Lakshadweep, in terms of section 26 of the Companies Act, 2013, applicable as on date of the Prospectus along with the endorsed/certified copies of all requisite do Material Contracts and Documents for Inspection beginning on page314.

  • TABLE OF CONTENTS

    SECTION I: GENERAL .............................................................................................................................. 3

    DEFINITIONS / ABBREVIATIONS ............................................................................................................. 3 FORWARD-LOOKING STATEMENTS ....................................................................................................... 8 PRESENTATION OF FINANCIAL AND OTHER INFORMATION .......................................................... 9 SECTION II: RISK FACTORS ................................................................................................................. 10

    SECTION III: INTRODUCTION ............................................................................................................. 34

    GENERAL INFORMATION........................................................................................................................ 34 SUMMARY OF BUSINESS, STRENGTH & STRATEGY ........................................................................ 40 THE ISSUE ................................................................................................................................................... 46 SUMMARY FINANCIAL INFORMATION ............................................................................................... 53 CAPITAL STRUCTURE ........................................................................................................................... 63 OBJECTS OF THE ISSUE ........................................................................................................................... 70 STATEMENT OF POSSIBLE TAX BENEFITS AVAILABLE TO THE DEBENTURE HOLDERS ....... 72 SECTION IV: ABOUT THE ISSUER AND INDUSTRY OVERVIEW ........................................... 79 INDUSTRY OVERVIEW ......................................................................................................................... 79

    OUR BUSINESS ........................................................................................................................................... 83 HISTORY AND MAIN OBJECTS ............................................................................................................... 99 OUR MANAGEMENT ............................................................................................................................... 102 OUR PROMOTERS .................................................................................................................................... 119 SECTION V: FINANCIAL INFORMATION ........................................................................................ 124

    DISCLOSURES ON EXISTING FINANCIAL INDEBTEDNESS ........................................................... 182 MATERIAL DEVELOPMENTS ................................................................................................................ 1