Muthoot Finance to raise Rs 2,000 crore through NCDs

Mumbai: Muthoot Finance on Monday announced that it would raise Rs 2000 crore through a public issue of secured Non-Convertible Debentures of face value of Rs. 1,000 each. The issue has a base issue size of Rs 100 crores with an option to retain oversubscription upto Rs 1900 crores aggregating upto tranche limit of Rs 2000 crores.

The issue opens on October 27 and closes on November 20, the company said in a press release. The NCDs have been rated AA +ve by CRISIL and AA by ICRA with a stable outlook.

There are 6 investment options for Secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments with coupon ranging from 7.15% p.a to 8.00% p.a.

The funds raised through this issue will be utilised primarily for lending activities of the Company.
The Lead Managers to the Issue are Edelweiss Financial Services, J M Financial, Equirus Capital and A. K. Capital Services.

“In the present scenario of lower interest rates and expectations of interest rates falling further, our issue offers safe long term investment options with high stable returns to investors,” said George Alexander Muthoot, MD, Muthoot Finance. “The issue will augment the company’s long term funding requirements thereby supporting the stable growth that our company envisages.
We expect the current issue too be well received by the market in line with our previous NCD issues as there is limited comparable investment avenues available.”