Markets

Muthoot Fin plans maiden public issue of NCDs

PTI Bangalore | Updated on August 18, 2011 Published on August 18, 2011

The country’s largest gold loan non-banking finance company Muthoot Finance is going in for a maiden public issue of secured, redeemable, non-convertible debentures (NCDs) to raise up to Rs 1,000 crore to fund its business plans.

The company will issue NCDs of Rs 1,000 face value each, aggregating up to Rs 500 crore, with an option to retain over-subscription up to Rs 500 crore, which would take the total size of the issue to Rs 1,000 crore, Muthoot Finance Chief General Manager, Mr K.B. Bijimon, told a press conference here today.

The issue opens on August 23 and closes on September 5, with an option for early closure.

Muthoot Finance recently raised Rs 900 crore from its IPO, which Mr Bijimon said was over-subscribed.

The company has promised a return of 11.75 per cent to 12.25 per cent on the NCDs, payable annually.

The company achieved a profit-after-tax of Rs 190 crore during the first quarter of 2011-12 and is expected to invest Rs 10,000 crore on business expansion plans during the year, Mr George Muthoot, one of its Directors, said.

Published on August 18, 2011

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.