Muthoot Mercantile NCD August 2024: Features, Benefits, and How to Apply

The Muthoot Mercantile NCD August 2024 is an important investment opportunity for those looking to diversify their portfolios. This article will provide detailed insights into the NCD (Non-Convertible Debenture) offering, including its features, benefits, and how to apply it.

What is an NCD?

A Non-Convertible Debenture (NCD) is a type of debt instrument that companies use to raise capital. Unlike convertible debentures, NCDs cannot be converted into equity shares. Investors receive fixed interest payments over a specified period, making them a popular choice for those seeking stable returns.

Key Features of Muthoot Mercantile NCD August 2024

Here are the essential details regarding the Muthoot Mercantile NCD August 2024:

• Issue Opening Date: August 12, 2024
• Issue Closing Date: August 26, 2024
• Issue Price: ₹1,000 per NCD
• Minimum Lot Size: 10 NCDs (₹10,000)
• Total Issue Size: ₹100 crores
• Tenor: 18 months, 24 months, 36 months, and 60 months
• Coupon Rate: Ranges from 8.85% to 9.70% per annum
• Rating: IND BBB/Stable by India Ratings & Research

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Objectives of the NCD Issue

The funds raised through the Muthoot Mercantile NCD August 2024 will be utilized for various purposes:

1. Onward Lending: A significant portion will be directed towards providing loans against gold and other securities.
2. Debt Repayment: The funds will help in repaying existing borrowings, improving the company’s financial health.
3. General Corporate Purposes: Some funds will be allocated for operational needs and future growth initiatives.

Financial Performance Overview

To understand the context of the NCD offering, it’s important to look at the financial performance of Muthoot Mercantile:

Benefits of Investing in Muthoot Mercantile NCD August 2024

Investing in the Muthoot Mercantile NCD August 2024 offers several advantages:

• Attractive Returns: With a coupon rate ranging from 8.85% to 9.70%, investors can expect attractive returns compared to traditional savings instruments.
• Regular Income: Investors receive fixed interest payments, providing a steady income stream.
• Security: Being secured NCDs, are backed by the company’s assets, reducing the risk for investors.
• Flexible Tenure: The NCD offers various tenures, allowing investors to choose based on their financial goals.

How to Apply for Muthoot Mercantile NCD August 2024

Investors can apply for the Muthoot Mercantile NCD August 2024 through the following methods:

1. Online Application: Investors can apply through their bank’s net banking facility or brokerage platforms.
2. Physical Application: Investors can also fill out a physical application form and submit it to their brokers.

Important Dates for the NCD

Here are the key dates related to the Muthoot Mercantile NCD August 2024:

Risks Involved

While investing in NCDs can be beneficial, there are risks to consider:

• Credit Risk: If the company faces financial difficulties, it may struggle to meet its interest payments.
• Market Risk: Changes in interest rates can affect the market value of NCDs.
• Liquidity Risk: NCDs may not be as liquid as stocks, making it harder to sell them before maturity.

The Muthoot Mercantile NCD August 2024 presents a unique opportunity for investors seeking stable returns. With attractive coupon rates and a solid financial background, this NCD can be a valuable addition to an investment portfolio.

Key Features of Muthoot Mercantile NCD August 2024

Final Thoughts

The Muthoot Mercantile NCD August 2024 is an attractive investment option for those looking for a fixed income with reasonable returns. By understanding the features, benefits, and risks, investors can make informed decisions that align with their financial goals.

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