Draft Prospectus July 26, 2011
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Draft Prospectus July 26, 2011 MUTHOOT FINANCE LIMITED Our Company was originally incorporated as a private limited company on March 14, 1997 under the provisions of the Companies $FWZLWKWKHQDPH³7KH0XWKRRW)LQDQFH3ULYDWH /LPLWHG´6XEVHTXHQWO\E\DIUHVKFHUWLILFDWHRILQFRUSRUDWLRQGDWHG0D\RXUQDPHZDVFKDQJHGWR³0XWKRRW)LQDQFH3ULYDWH/LPLWHG´2XU&RPSDQ\ZDVFRQYHUWHGLQWRD SXEOLFOLPLWHGFRPSDQ\RQ1RYHPEHUZLWKWKHQDPH³0XWKRRW)LQDQFH/LPLWHG´DQGUHFHLYHGDIUHVKFHUWLILFDWHRILQFRUporation consequent to change in status on December 02, 2008 from the Registrar of Companies, Kerala and Lakshadweep. )RUIXUWKHUGHWDLOVUHJDUGLQJFKDQJHVWRWKHQDPHDQGUHJLVWHUHGRIILFHRIRXU&RPSDQ\VHHVHFWLRQWLWOHG³+LVWRU\DQGMain Objects´RQSDJH103. Registered and Corporate Office: Muthoot Chambers, Opposite Saritha Theatre Complex, 2nd Floor, Banerji Road, Kochi 682 018, India. Tel: (91 484) 239 4712; Fax: (91 484) 239 6506; Website: www.muthootfinance.com; Email: [email protected]. Company Secretary and Compliance Officer: Rajesh A.; Tel: (91 484) 353 5533; Fax: (91 484) 239 6506; E-mail: [email protected] PROMOTERS: M.G. GEORGE MUTHOOT, GEORGE THOMAS MUTHOOT, GEORGE JACOB MUTHOOT AND GEORGE ALEXANDER MUTHOOT 38%/,& ,668( %< 087+227 ),1$1&( /,0,7(' ³&203$1<´ 25 ³,668(5´ 2) 6(&85(' 121-CONVERTIBLE DEBENTURES OF FACE VALUE OF ` 1,000 ($&+ ³1&'V´ $**5(*$7,1* UPTO ` 5,000 MILLIONWITH AN OPTION TO RETAIN OVER-SUBSCRIPTION UPTO ` 5,000 MILLION FOR ISSUANCE OF ADDITIONAL NCDS AGGREGATING TO A TOTAL OF UPTO ` 10,000 0,//,21+(5(,1$)7(55()(55('72$67+(³,668(´ GENERAL RISK Investors are advised to read the Risk Factors carefully before taking an investment decision in the Issue. For taking an investment decision, the investors must rely on their own examination of the Issuer and the Issue including the risks involved. Specific attention of the investors is invited to the Risk Factors on pages 6 to 28. ,668(5¶6$%62/87(5(63216,BILITY The Issuer, having made all reasonable inquiries, accepts responsibility for, and confirms that this Draft Prospectus contains all information with regard to the Issuer and the Issue, which is material in the context of the Issue, that the information contained in this Draft Prospectus is true and correct in all material respects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Draft Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. CREDIT RATING 7KH1&'VSURSRVHGWREHLVVXHGXQGHUWKLV,VVXHKDYHEHHQUDWHGµ&5,6,/$$-/Stable¶E\&RISIL for an amount of upto ` 10PLOOLRQYLGHLWVOHWWHUGDWHG-XO\DQGµ[ICRA] AA-(stable)¶E\,&5$IRUDQDPRXQWRIXSWR` 10,000 million vide its letter dated July 25, 2011. The rating of the NCDs by CRISIL indicates a high degree of safety with regard to timely servicing of financial obligations on the NCDs and such instruments carry a very low credit risk. The rating of NCDs by ICRA indicates high degree of safety regarding timely servicing of financial obligations and such instruments carry a very low credit risk. The ratings provided by CRISIL and/or ICRA may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions. Please refer to pages 273 to 280 for rating letter and rationale for the above rating. PUBLIC COMMENTS This Draft Prospectus is open for public comments. All comments on this Draft Prospectus are to be forwarded to the attention of Rajesh A., Company Secretary and Compliance Officer at the following address: Muthoot Chambers, Opposite Saritha Theatre Complex, 2nd Floor, Banerji Road, Kochi 682 018, Tel. No. (91 484) 353 5533; Fax: (91 484) 239 6506; E-mail: [email protected]. All comments must be received by the Issuer within 7 working days of hosting this Draft Prospectus on the website of the Designated Stock Exchange. Comments by post, fax and email shall be accepted, however please note that all comments by post must be received by the Issuer by 5 p.m. on the 7th working day from the date on which this Draft Prospectus is hosted on the website of the Designated Stock Exchange. LISTING The NCDs offered through this Draft Prospectus are proposed to be listed on the National Stock Exchange of India Limited ³NSE´ and the Bombay Stock Exchange Limited ³BSE´ . 2XU&RPSDQ\KDVREWDLQHGDQµLQ-SULQFLSOH¶DSSURYDOIRUWKH,VVXHIURPWKH16(YLGHWKHLUOHWWHUGDWHGy and from the BSE vide their letter dated y. For the purposes of the Issue, NSE shall be the Designated Stock Exchange. LEAD MANAGERS TO THE ISSUE ICICI SECURITIES LIMITED HDFC BANK LIMITED JM FINANCIAL CONSULTANTS PRIVATE H.T. Parekh Marg, Churchgate Investment Banking Division LIMITED Mumbai 400 020, India 7UDGH :RUOG µ$¶ :LQJ, 1st Floor, Kamala Mills, Senapati Bapat 141 Maker Chambers III, Nariman Point Tel: (91 22) 2288 2460 Marg, Lower Parel (W) Mumbai 400 021, India Fax: (91 22) 2282 6580 Mumbai 400 013, India Tel : (91 22) 6630 3030 Email: [email protected] Tel: (91 22) 4080 4108 Fax: (91 22) 2204 2137 Investor Grievance Fax: (91 22) 4080 4114 Email: [email protected] Email: [email protected] Email: [email protected] Investor Grievance Email: Website: www.icicisecurities.com Investor Grievance Email: [email protected] [email protected] Contact Person: Amit Joshi/Bhavin Vakil Website: www.hdfcbank.com Website: www.jmfinancial.in SEBI Registration No.: INM000011179 Contact Person: Paresh Soni Contact Person : Lakshmi Lakshmanan SEBI Registration No.: INM000011252 SEBI Registration No.: INM000010361 LEAD MANAGERS TO THE ISSUE KOTAK MAHINDRA CAPITAL COMPANY YES BANK LIMITED LIMITED Nehru Centre, 12th Floor, Discovery of India 1st Floor, Bakhtawar, 229, Nariman Point Dr. A B Road, Worli Mumbai 400 021, India Mumbai 400 018, India Tel: (91 22) 6634 1100 Tel : (91 22) 6669 9000 Fax: (91 22) 2283 7517 Fax: (91 22) 2497 4158 Email:[email protected] Email: [email protected] Investor Grievance Email: [email protected] Investor Grievance Email: [email protected] Website: www.investmentbank.kotak.com Website: www.yesbank.in Contact Person: Chandrakant Bhole Contact Person : Salome Shah SEBI Registration No.: INM000008704 SEBI Registration No.: INM000010874 CO-LEAD MANAGERS TO THE ISSUE REGISTRAR TO THE ISSUE KARVY INVESTOR SERVICES LIMITED RR INVESTORS CAPITAL SERVICES (P) LINK INTIME INDIA PRIVATE LIMITED Regent Chambers, 2nd floor LIMITED C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup Nariman Point 133A, Mittal Tower, A- Wing, Nariman Point (West), Mumbai 400 078, India Mumbai 400 021 Mumbai 400 021 Tel: (91 22) 2596 0320 Tel : (91 22) 2289 5000 Tel : (91 22) 2288 6627/28 Fax: (91 22) 2596 0329 Fax: (91 22) 3020 4040 Fax: (91 22) 2285 1925 Toll Free: 1-800-22-0320 Email: [email protected] Email: [email protected] Email: [email protected] Investor Grievance Email: [email protected] Investor Grievance Email: [email protected] Investor Grievance Email: [email protected] Website: www.karvy.com Website: www.rrfcl.com Website: www.linkintime.co.in Contact Person : Lokesh Singhi Contact Person : Brahmdutta Singh Contact Person: Sachin Achar SEBI Registration No.: INM000008365 SEBI Registration No.: INM000007508 SEBI Registration No.: INR000004058 ISSUE PROGRAMME* ISSUE OPENS ON : y ISSUE CLOSES ON : y *The subscription list for the Issue shall remain open for subscription at the commencement of banking hours and close at the close of banking hours on the dates indicated above or earlier or on such date as may be decided at the discretion of the duly authorised committee of Directors constituted by resolution of the Board dated July 25, 2011, subject to necessary approvals. In the event of such early closure of subscription list of the Issue, our Company shall ensure that notice of such early closure is given one day prior to such early date of closure through advertisement/s in a leading national daily newspaper. IDBI Trusteeship Services Limited has by its letter dated July 25, 2011 given its consent for its appointment as Debenture Trustee to the Issue and for its name to be included in this Draft Prospectus and in all the subsequent periodical communications sent to the holders of the Debentures issued pursuant to this Issue. A copy of the final Prospectus shall be filed with the Registrar of Companies, Kerala and Lakshdweep, in terms of section 56 and section 60 of the Act, along with the requisite endorsed/certified copies of all requisite GRFXPHQWV )RU IXUWKHU GHWDLOV SOHDVH UHIHU WR WKH VHFWLRQ WLWOHG ³Material Contracts and Documents for Inspection´ EHJLQQLQJ RQ SDJH 270. TABLE OF CONTENTS SECTION I: GENERAL ..................................................................................................................................... 1 DEFINITIONS / ABBREVIATIONS .................................................................................................................... 1 FORWARD-LOOKING STATEMENTS .............................................................................................................. 4 PRESENTATION OF FINANCIAL AND OTHER INFORMATION ................................................................. 5 SECTION II: RISK FACTORS ........................................................................................................................