Muthoot Finance NCD

Muthoot Finance, the largest gold financing company in terms of loan portfolio, is in the process of raising up to Rs 1,000 crore through a public issue of secured redeemable non-convertible debentures. The issue opened for subscription on 23rd August, 2011.

Muthoot's operating history has evolved over a period of 72 years since M George Muthoot (the father of the Promoters) founded a gold loan business in 1939. Presently, it is the largest gold financing company in India in terms of loan portfolio, according to the IMACS Research & analytics Report (2010).

The NCDs will be listed on the NSE and the BSE and will be used for debt repayments and increasing its market base in the north, east and west zones. The NCD issue has three investment options and yield of up to 12.25 per cent per annum.

Issue Highlights

• Minimum Subscription: Rs 5000 (5 NCDs of face value Rs 1000 each)
• Attractive coupon rate of 12.25% per annum
• Various Modes of Interest Payment (Direct Credit, NECS, RTGS, NEFT, Registered Post / Speed Post)
• No TDS on listed debentures (tax to be levied as per the tax slab)
• To be listed on NSE & BSE

AAbout the Company : History of 72 years Large national presence with 2997 branches as of 30th June 2011 Gold Loan Assets Under Management: Rs 15,728 Crore Approximately 112 tons of gold held as loan security. Net Profit for FY 2011: Rs 494 Crore Net Worth: Rs 2397 Crore DDetails of the Issue are as follows: Particulars Series I Series II Series III Tenure 24 months 36 months 60 months Minimum Application Rs. 5000 and in multiples of one bond thereafter Face Value Rs. 1000 per debenture Issue Price Rs. 1000 per debenture Interest Payment Annual Coupon rate (%) QIBs 11.75 12 12 Corporates 12 12.25 12.25 Individuals/ HUFs (Investment > INR 5 Lakhs) 12 12.25 12.25 Individuals/ HUFs (Investment < INR 5 Lakhs) 12 12.25 12.25 Effective Yield (%) QIBs 11.75 12 12 Corporates 12 12.25 12.25 Individuals/HUFs (Investment > INR 5 Lakhs) 12 12.25 12.25 Individuals/HUFs (Investment < INR 5 Lakhs) 12 12.25 12.25 A 12 per cent rate of interest on a debt instrument offers an opportunity for investors to obtain higher yields resulting from a rising interest rate scenario. Secondary market yields on the slightly higher rated AA securities with a residual maturity of two years, are almost two percentage points lower than the rate offered by Muthoot which makes it an attractive instrument. Deposit taking NBFCs with slightly better credit profile are offering anywhere between 9.55-10 per cent on deposits with similar tenors.

Public Issue of Non Convertible Debentures from Manappuram Finance

  Manappuram Finance, a leading NBFC from Kerala, specializes in gold loans, has announced a public issue of Secured redeemable Non Convertible Debentures  of Rs.1,000 each.  The company will raise up to Rs.400 crore, with an option to retain oversubscription up to Rs.350 crore, aggregating Rs.750 crore.

Mannapuram Finance Ltd. is a part of the Manappuram Group with nine companies having diverse interests in Gold Loans, Asset Financing, Insurance, Foreign Exchange, Money Changing, and most recently, gold jewellery. Highlights of the issue:

Issue Opens on August 18, 2011 Issue Closes on September 5, 2011 Attractive coupon of 12.20% per annum No TDS on listed debentures Details of the two available options: Option I II Tenure 400 Days 24 Months Minimum Application Rs. 5000 & in multiples of 1 bond thereafter Rs. 5000 & in multiples of 1 bond thereafter Face Value Rs. 1000 Rs 1000 Issue Price Rs. 1000 Rs. 1000 Interest Payment Cumulative, on maturity Semi-Annual Coupon Rate (%) Resident Individuals/HUF NA 12.20% Corporates/Institutions/QIBs NA 12.00% Yield (%) Resident Individuals/HUF 12.00% 12.56% Corporates/Institutions/QIBs 12.00% 12.34% Redemption Amount Rs. 1132.25 for all categories (face value plus redemption premium) Face value of NCD plus any interest that may have accrued Nature of Indebtedness Pari Passu with other secured creditors and priority over unsecured creditors Under option II, the yield to maturity will be 12.34 per cent in categories I and II, and 12.56 per cent in category III. The interest payment will be semi-annual. Mr. Unnikrishnan, Managing Director of the company said the market for gold loan financing was largely untapped and would offer a vast potential for further growth. The organised gold loan market was about 1.2 per cent of the value of total gold stock in India. He said the company was intending to enter the travel and tourism business. As of March 31, 2011, the company's gold loan portfolio comprised more than two million gold loan accounts. http://www.manappuram.com/ Download prospectus

New Income Tax Rates for the FY 2011-12

New tax slabs: for Male individual taxpayer

Slabs (Rs)	Rate
1,80,000	Nil
1,80,000-5,00,000	10
5,00,000-8,00,000	20
8,00,001	30

New tax slabs: for female individual taxpayer

Slabs (Rs)	Rate
upto 1,90,000	0
1,90,000-500000	10
500001-800000	20
800001 and above	30

HDFC launches Debt Fund for Cancer Cure

HDFC has launched a close ended fund , HDFC Debt Fund for Cancer Cure (HDFCC).  This will be a capital protection oriented scheme.  This scheme will enable unit holders to contribute the dividend declared to Indian Cancer Society. This donation will be eligible for deduction under section 80G of Income Tax Act.   Investors may opt to donate either 50 per cent or 100 per cent of such dividend declared. The amount would be automatically contributed to the ICS. The dividends, as is the case with all mutual funds would be tax-free in the hand of the investor. The fund is suitable only for those investors whose primary objective is philanthropy than generating high returns.


The NFO will close on 4th March 2011.
For details visit http://www.hdfcfund.com/

What are Exchange Traded Funds (ETFs)?

Exchange Traded Funds are essentially Index Funds that are listed and traded on exchanges like stocks. Until the development of ETFs, this was not possible before. Globally, ETFs have opened a whole new panorama of investment opportunities to Retail as well as Institutional Money Managers. They enable investors to gain broad exposure to entire stock markets in different Countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investing.

An ETF is a basket of stocks that reflects the composition of an Index, like S&P CNX Nifty or BSE Sensex. The ETFs trading value is based on the net asset value of the underlying stocks that it represents. Think of it as a Mutual Fund that you can buy and sell in real-time at a price that change throughout the day.

                                                 PERFORMANCE OF EXCHANGE TRADED FUNDS

Schemes	Latest Price		% Change	Asset Size	NAV	Returns in % (as on Feb 21, 2011)
				(Rs. cr.)	(Rs./Unit)	1wk	1mth	3mth	6mth	1yr	2yr	3yr
Kotak PSU Bank ETF	449.87		0.36	65.73	446.55	1.9	5.9	-11.1	-2.6	42.9	67.9	12.9
PSU Bank BeES	438.00		1.50	9.20	432.29	1.9	5.9	-11.1	-2.6	42.7	65.1	11.7
Bank BeES	1,108.49		-0.00	46.60	1,099.72	1.4	3.1	-9.3	-1.7	29.5	65.5	6.2
Reliance Banking ETF	1,050.00		-0.28	14.55	1,119.86	1.3	3.0	-9.3	-1.7	29.3	65.2	--
Reliance Gold ETF	1,939.35		0.33	340.61	1,932.93	1.4	0.4	1.7	8.6	20.8	12.9	18.1
Gold BeES	1,999.20		0.18	1,633.87	1,987.78	1.4	0.3	1.6	8.6	20.8	13.0	18.8
SBI Gold Exchange Traded Fund	2,028.75		0.43	175.93	2,024.27	1.4	0.3	1.6	8.4	20.8	--	--
Quantum Gold Fund	994.00		0.60	26.63	988.41	1.4	0.3	1.6	8.6	20.8	12.9	17.1
Kotak Gold ETF	1,998.80		0.43	229.93	1,986.46	1.4	0.3	1.6	8.5	20.8	12.9	18.7
UTI Gold Exchange Traded Fund	2,004.05		0.38	449.40	1,987.11	1.4	0.3	1.6	8.5	20.8	13.0	18.7
ICICI Pru SPIcE Plan	186.00		0.00	1.12	190.71	--	-4.0	-6.5	-0.7	13.5	41.4	1.0
Nifty BeES	559.70		1.01	570.04	551.51	0.1	-4.0	-7.3	-1.3	13.5	39.8	1.1
Kotak Nifty ETF	555.77		0.50	13.46	549.79	--	-4.1	-7.3	-1.4	13.5	--	--
Kotak Sensex ETF	185.00		-0.34	17.15	185.11	--	-4.0	-7.0	-1.2	13.3	42.8	--
Junior BeES	109.02		0.51	127.44	108.00	0.1	-4.5	-14.8	-11.0	8.0	61.4	2.2
Shariah BeES	123.50		0.49	0.95	122.18	-0.3	-5.5	-6.0	-0.9	6.8	--	--
Hang Seng BeES	1,377.28		-1.26	62.47	1,395.39	1.5	-4.0	-0.8	8.6	--	--	--
ICICI Pru Gold ETF	2,050.70		0.36	87.35	2,048.46	1.4	0.3	1.5	6.9	--	--	--
HDFC Gold Exchange Traded Fund	2,034.00		0.15	300.66	2,031.48	1.4	0.3	1.6	8.5	--	--	--
Liquid BeES	999.99		0.00	477.15	1,000.00	--	--	--	--	--	--	--
Religare Gold ETF	2,070.00		0.00	38.96	2,042.65	1.4	0.3	1.6	8.6	--	--	--
* Returns over 1 year are annualised.

SOURCE: www.moneycontrol.com