Muthoottu Mini Financiers NCD IPO

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The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

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Low risk:

AAA, AA+, AA, AA-, A+, A, A-

Moderate risk

BBB+, BBB, BBB-, BB+, BB

High risk

BB-, B+, B, B-, C, D

The rating agency for this Bond is ICRA Limited.

About

Muthoottu Mini Financiers (part of the Muthoottu Mini Group) is a non-deposit-taking, non-banking finance company-middle layer (NBFC–ML) engaged in the gold loan business. The company provides loans against pledged household gold jewellery in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Haryana, Maharashtra, Gujarat, Uttar Pradesh, and Goa, as well as the Union Territories of Puducherry and Delhi. The company also operates a microfinance segment, offering unsecured loans to joint liability groups of women (a minimum of five members) for business purposes through select branches in Kerala. Gold loan customers are mainly individuals from rural and semi-urban areas, with loan tenures ranging from 60 to 720 days, varying interest rates, and different loan amounts based on customer needs. Microfinance loans are extended exclusively to women from rural and semi-urban areas of Kerala. In addition to lending, the company provides services such as depository participant (DP) operations, money transfer, insurance agency, PAN card assistance, and travel agency services. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: For onward lending, financing, and prepayment/repayment of the borrowings availed by the company. General corporate purposes.;

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As of June 30, 2025, the company operated 958 branches across Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Haryana, Maharashtra, Gujarat, Uttar Pradesh, and Goa, as well as the Union Territories of Puducherry and Delhi. And as of FY25, it had 613,863 active gold loan accounts.

The company claims to follow a structured and standardised process across all branches. It further states that these processes are designed at the corporate office by professionals with extensive experience in banking and financial services, under the supervision of the management.

The company states that it can quickly and accurately assess the quality of pledged gold jewellery. This process, carried out in-house without damaging the jewellery, involves evaluating gold content and quality using tested appraisal methods. The company claims that once a loan is sanctioned, pledged gold is monitored regularly through internal audits and risk management checks.

The company claims to offer an online gold loan facility where customers need to visit a branch only for the initial appraisal. Subsequent disbursements during the one-year maximum period can be requested and processed online, subject to prevailing loan-to-value (LTV) norms.

The company has experienced a consistent increase in revenue from operations and profit after tax (PAT) over the last three years. Revenue from operations increased from Rs 543.71 crore in FY23 to Rs 668.21 crore in FY24 to Rs 810.46 crore in FY25. PAT increased from Rs 67.28 crore in FY23 to Rs 77.83 crore in FY24 and Rs 94.18 crore in FY25.

Muthoottu Mini Financiers NCD

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