Muthoot Finance’s Rs500-crore bond issue opens tomorrow

The issue, priced at Rs1,000 per bond with a minimum of Rs5,000 worth of bonds, opens on 2 March 2012 and closes on 17 March 2012.

Gold loan company Muthoot Finance’s Rs500-crore bond issue, the third this fiscal, will hit the market on Friday, 2 March 2012. The funds raised through this issue will be utilised for various financing activities, including lending and investments, to repay existing liabilities or loans and towards business operations, including for capital expenditure and working capital requirements.

“We have got Sebi permission for an Rs250 crore NCD (non-convertible debenture) issue which has a green-shoe option,” Muthoot Finance managing director George Alexander Muthoot said.

The issue offers four different tenors – two years with a yield on 13%, three years at 13.25%, five years for HNIs and QIBs, with a coupon of 13.25% and five and a half year tenor attracting 13.43%. In the past two issues, the gold loan firm had offered 13% for two years and 13.25% for three to five year bonds.

On higher pricing, chief financial officer Oommen K Mammen said going by the indications from RBI, the interest rate has reached its peak and “we want maximum participation from the retail investors and hence the higher coupon”.
The issue, priced at Rs1,000 per bond with a minimum of Rs5,000 worth of bonds, opens on 2 March 2012 and closes on 17 March 2012.

Muthoot said the funds will be used for operational expenses, apart from part-paying debt. This is the third NCD issue from the company this fiscal. Earlier, it had raised Rs693 crore August 2011 and Rs459 crore in December 2011.

The company has so far raised Rs10,000 crore worth working capital from as many as 30 banks and mutual funds. Since the bank lending to gold financing firm has been tightened by the Reserve Bank recently, Muthoot said his cost of fund has gone up to some extent.

In the recent past, the cost of funds has gone by 2.5-3% to 12.5-13%, while the firm’s net interest margin remained at 10.81% at the end of Q3, he said.

On the rationale for the third NCD route, Muthoot said most of the banks have now reached their sectoral cap to the industry, forcing people like us to look for more diversified fund raising avenues. As of the quarter to December 2011, the highly leveraged company had an asset size of around Rs23,000 crore out of its share capital of just about Rs3,000 crore, with the debt being the rest, Muthoot said.

On expansion plan, he said the Muthoot Finance is likely to overshoot the branch plan by almost 100 to 800, taking the overall network to 3,480 by this fiscal-end.

During the December quarter, its retail loan assets rose by Rs1,944 crore to Rs22,885 crore, while income grew 91% to Rs1,231 crore, helping the company report a 61% spike in net profit at Rs251 crore as against Rs155 crore a year ago.

In the early afternoon, Muthoot Finance was trading at around Rs155 per share on the Bombay Stock Exchange, 0.61% down from the previous close.

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Bata India Q4 net up 31% at Rs45 crore

Net sales of Bata India rose to Rs430.93 crore for the fourth quarter ended 31 December 2011.

Footwear retailer Bata India said its net profit rose by 30.99% to Rs45.05 crore for the fourth quarter ended 31 December 2011, over the same period previous year. The company had posted a net profit of Rs34.39 crore in the same period previous year.

Net sales of the company rose to Rs430.93 crore for the fourth quarter ended 31 December 2011, as compared to Rs355.85 crore in the same period previous year, Bata India said in a statement.

For the year ended 31 December 2011, the company posted a net profit of Rs225.83 crore, against Rs95.35 crore in 2010. The company's board recommended a final dividend of Rs6 per share (60%) for the year ended 31 December 2011.

In the early afternoon, Bata India was trading at around Rs712.35 per share on the Bombay Stock Exchange, 1.60% up from the previous close.

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Claris Lifesciences 2011 annual revenues at Rs738.77 crore

Claris Lifesciences’ consolidated profit after tax for the year 2011 stood at Rs126.26 crore with margins of 17.1%.

Claris Lifesciences, which announced its audited financial results for the year ended 31 December 2011, had consolidated annual revenues of Rs738.77 crore compared to Rs752.34 crore in the previous year. The break-up of the revenue between domestic and international sales was 47% and 53% respectively.

Consolidated EBITDA stood at Rs240.41 crore for the year 2011 with margins at 32.5% against Rs243.38 crore with margins of 32.4%. Consolidated profit after tax for the year 2011 stood at Rs126.26 crore with margins of 17.1% against Rs141.44 crore for the previous year with margins of 18.8%.

The Board of Directors has recommended a dividend of Rs2 per share (20%).

In the early afternoon, Claris Lifesciences was trading at around Rs150 per share on the Bombay Stock Exchange, 3.16% up from the previous close.

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