#Muthoot Finance picks up 30% stake in AAF for $2.1 mn

Muthoot Finance acquired 167,785,600 existing equity shares of Asia Asset Finance PLC, Colombo (AAF). This represents 29.98% of total capital of AAF for $2.1 mn. Muthoot Finance has funded AAF acquisition through internal accruals.

Muthoot Finance picks up 30% stake in AAF for $2.1 mn pic.twitter.com/H3vxQKyR4m
— Press Release Watch (@PrReleaseWatch) August 26, 2014

AAI is a Registered Financial Company based in Sri Lanka and listed in DiriSaviBoard of Colombo Stock Exchange. AAF is in lending business since 1970. At present AAF is involved in Retail Finance, Hire Purchase & Business Loans and has 11 branches across Sri Lanka.

#Muthoot Finance launches 35th Muthoot ATM

 Muthoot Finance Ltd, the flagship company of Muthoot Group and India’s largest financial service company, today announced the launch of its 35th White Label ATM (WLA) at St. George’s School, Alaknanda, New Delhi.

The Muthoot ATM was inaugurated by Mr. Alexander George Muthoot (Director, Muthoot Group) in the presence of Dr. Sara George (Principal, St. George's School), school students and staff, RWA residents and other dignitaries.
Alexander George Muthoot, Director, Muthoot Group on the launch of the Muthoot ATM said: “The Muthoot ATM  at St. George's school will encourage parents to open bank accounts for their children so as to upgrade their children's 'piggy banks' to real time banking. Moreover, everyone looks at banks as the natural providers of their mobile wallet and with our ATM, we aim to provide and offer the latest solutions to enhance our younger customers, parents and the local residents’ day-to-day banking experience.”

Muthoot Finance yet to decide on venturing into insurance business

The Exchange had sought clarification from Muthoot Finance Limited with respect to a news item captioned "Muthoot fin mulls insurance biz ". The Company has clarified that "When overenthusiastic media personnel asked about venturing into new business, Mr. George M. Jacob, Sr. Vice President (Legal, Corporate Affairs and Marketing), Muthoot Group, being member of promoter family (The Muthoot Group)mentioned about Muthoot Family s keen interest on various sectors viz. healthcare, hospitals and financial services. He also mentioned that promoter family is keen to venture into insurance business. However, Company M/s Muthoot Finance Ltd wishes to inform you that Board of Directors of Muthoot Finance Ltd has not taken any decision about venturing into insurance business as well as have not applied for the licence. Any such decision, if any, taken by Board of Directors will be duly intimated to Stock Exchanges immediately.":

Muthoot Finance Cochin International Half Marathon.

Muthoot Finance, India’s largest financial inclusive loan provider and the flagship company of the Muthoot Group, today officially announced 29th December 2013 as the marathon day for Muthoot Finance Cochin International Half Marathon. After Mumbai, Delhi and Bangalore, it’s the turn of Kochi to host an international marathon. 'Flying Sikh' Milkha Singh, 'Payyoli Express' PT Usha and Malayalam superstar Mohanlal are the brand ambassadors of this mega run.

The marathon is expected to gather more than 8000 participants including 20 elite international runners, India’s top distance runners and several other beginning marathoners, running lovers, the fitness community, enthusiastic corporates and energetic youngsters, among others.  The Marathon will cover a distance of 21 kms will take the participants from the Maharaja College Grounds to the quaint town of Mattancherry before culminating at Maharaja Stadium.

Commenting on the occasion, Alexander George Muthoot, Director, Muthoot Group says: “We have seen marathons playing an increasingly prominent role in bringing people of all walks of life closer. The objective of the marathon is to make the state a better place and strive to do everything possible to transform the state and make it greener, eco friendly and pollution free for the citizens to lead a happy, healthy and prosperous life. We are proud to be affiliated with this annual sporting event and hope that this marathon will celebrate the common passion of running as well as pledge for a better healthy Kerala. .”

The Muthoot Finance Cochin International Half Marathon has been certified by the Association of International Marathons and Distance Races (AIMS) and is being conducted under the aegis of the Athletic Federation of India. The Technical Conduct of the event will be the responsibility of the Kerala State Athletics Association.

“Muthoot has always been in the forefront to promote sports and celebrate sportsmanship. Till now we had tied-up with Delhi Daredevils and focused on cricket but as the athlete-fan relationship is evolving, we decided to associate with a prominent sports platform that can motivate and mobilise people from all walks of life. Marathon was the unanimous platform that could captivate and engage the consumers and further enhance our brand equity,” adds Alexander George Muthoot.
The Half Marathon will have an overall category, besides different age group categories, giving athletes of all ages an opportunity to bask in the limelight. Besides the half marathon, a 7-km amateur run will be held for people from all walks of life. The Amateur Run will give every runner above the age of 15 years an opportunity to emerge as winners in their own right and promises to be a crowd putter.

The event will carry a total cash prize of Rs. 60 lakh with separate prize money for Indian athletes. The event will witness the participation of around 20 foreign athletes from countries, including Kenya and Ethiopia. The male and female winners of half marathon will bag USD 5,000 each while the runners-up will get USD 3,000 each. Prize money will be awarded to first eight finishers in both men and women categories. The fastest man and woman athlete will take home Rs. 2 lakh each. The half marathon will be a timed event and all successful finishers will be provided with a finishers’ medal and timing certificate.

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

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 oversubscription 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 upto50% 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 upto15% of the Issue size (Rs.45crores) 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 to 35% 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.

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.