Muthoot Finance to raise ₹1,000 crore through NCDs

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Muthoot Finance Ltd has announced its 24th series of public Issue of Secured Redeemable Non-Convertible Debentures of face value of ₹1,000 each (secured NCDs). The issue is with a base issue size of ₹100 crore, with an option to retain oversubscription of up to ₹900 crore aggregating up to tranche limit of ₹1,000 crore (issue).

The issue opens on December 11 and closes on January 5, 2021, with an option to close on such earlier date or extended date as may be decided by the board of directors or NCD committee.

The secured NCDs proposed to be issued under this issue have been rated AA/Positive by Crisil and AA (stable) by ICRA. The rating of the secured NCDs by Crisil and ICRA indicates “high degree of safety regarding timely servicing of financial obligations”.

The NCDs are proposed to be listed onthe BSE. The allotment will be on first come first serve basis.

There are six investment options for secured NCDs with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payments with coupon ranging from 6.75 per cent per annum to 7.75 per cent per annum.

George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said: “In our 24th public issue of NCDs, we wish to focus on retail and high networth individual investors, and we have allocated 90 per cent of the issue for this segment. At a time when interest rates have significantly come down, we are able to offer attractive interest rates to retail and high networth individual investors. We look forward for the market accepting the current issue too in line with our previous NCD issues as there are limited comparable investment avenues available.”

The funds raised through this issue will be utilised primarily for lending activities of the company, he said..

The Lead Managers to the Issue are Edelweiss Financial Services Limited, J M Financial Limited, Equirus Capital Private Limited and AK Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the Issue. Link Intime India Private Limited is the Registrar to the issue.

 



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