Muthoot Finance Ltd has announced its 30th series of public issue of Secured Redeemable Non-Convertible Debentures (secured NCDs) of the face value of ₹1,000 each.

The issue is with a base issue size of ₹100 crore with an option to retain over-subscription up to ₹400 crore aggregating up to a tranche limit of ₹500 crore (“Issue”).

The issue will open on February 8 and close on March 3, 2023, with an option to close on an earlier date or an extended date, as may be decided by the board of directors or NCD committee.

The secured NCDs have been rated [ICRA] AA+ (Stable) by ICRA. The rating of the secured NCDs by ICRA indicates a “high degree of safety regarding timely servicing of financial obligations”. The NCDs are proposed to be listed on the BSE and the allotment will be on a first-come-first-serve basis.

There are seven investment options for secured NCDs with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payments with interest rates ranging from 8.25 per cent p.a. to 8.60 per cent p.a. for individual investors.

George Alexander Muthoot, Managing Director, Muthoot Finance Ltd,said, “In the light of the recent interest rate hikes by RBI, we have also increased the interest rates in our 30th NCD issue by 0.50 per cent, 0.40 per cent, 0.35 per cent p.a. for tenors of two, three and five years respectively. This decision has been taken for the benefit of our investors. We have allocated 90 per cent of the issue for retail and high-net-worth individual investors who will be getting 0.50 per cent p.a. more than the interest rate applicable for institutions and corporates. We expect a positive response from the market for the current issue.”

The funds raised through this issue will be utilised primarily for the company’s lending activities.

The Lead Manager to the issue is A.K. Capital Services Ltd. IDBI Trusteeship Services Ltd is the Debenture Trustee for the Issue. Link Intime India Private Ltd is the Registrar.