Will borrow up to Rs 3,200 crore from banks, NCDs in FY23; aim for IPO post 2027, say Muthoottu Mini officials

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Muthoottu Mini Financiers will borrow up to Rs 3,200 crore from banks and through non-convertible debentures (NCDs) in the present fiscal, and is aiming to go public post 2027, the gold-loan-focused non-banking finance company’s (NBFC) management told Moneycontrol on July 8.

“We issued NCDs when banks were not supporting (offering lower rates). Earlier, we had seven bank partners, but now we have 19-20 banks supporting us, and that really is cheaper also…What we are looking at is Rs 1,600 crore in NCDs and Rs 1,600 crore through bank loans this fiscal,” said the NBFC’s Chief Executive Officer PE Mathai.

As per rating agency CRISIL, borrowing costs for NBFCs will likely rise 85-105 basis points (bps) this fiscal. Overall profitability, however, is expected to remain steady cushioned by a reduction in credit costs, it said.

In terms of asset growth, Muthoottu Mini is expecting to reach total assets under management (AUM) of up to Rs 8,000 crore by 2027, Managing Director Mathew Muthoottu, said. As on March end, the NBFC’s total AUM stood at Rs 2,499 crore.

Further, during the current fiscal, the NBFC will increase its presence in central and northern regions, opening a total of 130 new branches, the MD said.

“We will open 130 branches, various territories including Andhra Pradesh, Telangana, Mumbai, Delhi-NCR, Uttar Pradesh, Haryana…north and central is where we are trying to expand,” he added.

As on March 31, 2022, the gross NPA and net NPA of Muthoottu Mini stood at 0.61 per cent and 0.52 per cent, respectively.