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Muthoot Finance to be Added to MSCI India Domestic Index

In Business
November 11, 2020

Muthoot Finance is India’s No.1 Most Trusted Financial Services Brand and India’s largest gold loan NBFC. As part of MSCI’s (Morgan Stanley Capital Index) semi-annual review of indexes, Muthoot Finance will be added to the MSCI India Domestic Index from the close of November 30, 2020.

MSCI is at the forefront of constructing global benchmarking indexes and the MSCI India Index is designed to measure the performance of the large and midcap segments of the Indian market. This index covers approximately 85% of the Indian equity universe and companies are selected after comprehensive evaluation on several factors that are considered vital for global investors.

Speaking on this development, George Alexander Muthoot, Managing Director of the Muthoot Group said,”It is a matter of pride and honour to see Muthoot Finance included in the MSCI India Domestic Index. This is a recognition of the growth & performance the company has achieved over the years with the trust of our customers, hard work of our employees, diligent implementation of industry’s best practices & processes and rock solid faith of our investors & bankers. We will continually strive to meet the growing expectations of all our stakeholders whilst maintaining the highest standards of corporate governance.”

Muthoot Finance has demonstrated consistent growth, even in unprecedented times of this pandemic. Gold loans have seen strong demand for working capital requirement of small businesses, to fulfill personal finance needs and are now also being availed for consolidating higher cost debt such as credit card debt post lifting of the moratorium. The company’s recent ₹2000 cr NCD issue, largest in its history and unrivalled in gold loan industry, was launched last month on October 27, 2020 and was oversubscribed on Day 1, registering another record achievement for the company and in its peer industry. This reflects the sentiment that Muthoot Finance’s NCDs are a preferred investment option as the instrument is secured (backed by gold) and investors seeking fixed return in uncertain times are getting a much higher coupon rate than options like bank fixed deposits.

MSCI announces changes to its portfolio every quarter based on Market capitalisation, FII limit, Free Float and Foreign Room factors (i.e. FDI limits). It is estimated that MSCI’s India portfolio attracts around US$30-32 bn of passive fund investments.