Muthoot Finance Limited Public Issue of NCDs oversubscribed by 1.084 times (provisional)

Total subscription of Rs. 325.20crore (prov) vis-à-vis Issue size of Rs. 150 crore with an option to retain over-subscription up to Rs.150 crore, aggregating to Rs. 300 crore

Mumbai Sep 20 2013(Sailesh Gandhi): Muthoot Finance Limited, the largest gold financing company in India in terms of loan portfolio according to the IMaCS Industry Report, 2012 Update, made a public issue of secured, redeemable, non-convertible debentures (“Secured NCDs”) and unsecured, redeemable, non-convertible debentures (“Unsecured NCDs”) (Secured NCDs and Unsecured NCDs are collectively referred to as “NCDs”) of face value of Rs. 1,000 each aggregating upto Rs. 150 crores with an option to retain over subscription upto Rs. 150 crores, aggregating to Rs. 300 crores (“Issue”).  The Issue has been oversubscribed with the total subscription at Rs 325.20crores. The Issue had several investment options and yields on redemption (with maximum yield of 12.55% (per annum) for Option IX Secured NCDs) as specified in the prospectus dated August 28, 2013 filed with the Registrar of Companies, Kerala and Lakshadweep (“Prospectus”).  The Issue opened on September 02, 2013, and closed on September 16, 2013.

The retail category investors have sought to invest Rs.307.45 crores (prov.) in the Issue vis-à-vis a reserved portion of upto 50% of the Issue size (Rs. 150 crores). The Qualified Institutional Buyers (“QIBs”) category investors have sought to invest Rs.0.20 crores (prov.) in the Issue vis-à-vis a reserved portion of upto 15% of the Issue size (Rs.45 crores) as specified in the Prospectus. The Non-Institutional Investors (“NIIs”) category investors have sought to invest Rs. 22.50 crores in the Issue (prov.) vis-à-vis a reserved portion of up to35% of the Issue size(Rs. 105crores) as specified in the Prospectus.

The funds raised through this Issue will be utilised by the Company for various financing activities including lending and investments, to repay existing liabilities or loans and towards business operations including for capital expenditure, working capital requirement and other general corporate purposes, after meeting the expenditures of and related to the Issue and subject to applicable statutory/regulatory requirements.

The NCDs have been rated 'CRISIL AA-/Negative' by CRISIL and '[ICRA] AA- /Negative' by ICRA respectively.

The Company provides personal and business loans secured by gold jewellery, or gold loans, primarily to individuals who possess gold jewellery but cannot access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements. As of June 30, 2013, the Company has branch network of 4,163 branches. The Company’s Gold Loan portfolio as of March 31, 2013 comprised approximately 6.32million loan accounts. As of June 30, 2013, it employed 24,945 persons in its operations.

The Lead Manager to the Issue is ICICI Securities Limited.

Retail Category gets subscription (Category3) Rs.307.45 crore(prov) vis-à-vis reserved portion of Rs.150 crores

Disclaimer: Muthoot Finance Limited, is proposing, subject to market conditions and other considerations, to make a public issue of securities and has filed a Draft Prospectus with the Securities and Exchange Board of India (“SEBI”) and BSE Limited and the Prospectus with the Registrar of Companies, Kerala and Lakshadweep (“RoC”), SEBI and BSE Limited.  The Draft Prospectus and Prospectus are available on the website of SEBI at www.sebi.gov.in, BSE Limited at www.bseindia.com, the Company at www.muthootfinance.com and the respective website of the Lead Manager, at www.icicisecurities.com related to the Issue.  All investors proposing to participate in the Issue should invest only on the basis of the information contained in the Prospectus (including the risk factors therein) dated August 28, 2013, filed with the RoC