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Muthoot Finance has announced its 33rd series of Public Issue of Secured Redeemable Non-Convertible Debentures of face value of ₹1,000 each (“Secured NCDs”). The issue comes with a base issue size of ₹100 crore with an option to retain over-subscription up to ₹900 crore aggregating up to tranche limit of ₹1,000 crore. The issue opens on January 8 and closes on January 19 with an option to close on an earlier date or extended the 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 [ICRA] AA+ (Stable). The NCDs are proposed to be listed on BSE. The allotment will be on ‘first come first serve’ basis. There are 7 investment options for secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments with interest rate ranging from 8.75 to 9 per cent pa for individual investors and corporate investors.
‘Twin advantages’
George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said “Our 33rd NCD issue is open for subscription, and allows investors to get the twin advantages of better rating as well as an attractive interest rate.Compared to other available investment avenues, our NCDs, rated ‘AA+/Stable’, is a better investment option. As part of this issue, our retail individual investors will receive 0.5 per cent pa more than the interest rate applicable to institutions and corporates. We are expecting a good response for the issue.”
He said 95 per cent of the issue is allocated for companies and individual investors who will be getting 0.50 per cent pa more interest rate than that applicable for institutions. Since the RBI has paused the increase in benchmark Repo rate and with the market expectation of a Repo rate cut during the year, investors will get an opportunity to lock-in their investments at a higher rate of interest for three years and five years by subscribing to the current NCD issue. The funds raised through this issue will be utilised primarily for lending activities of the company.
The Lead Manager for the Issue is AK Capital Services. IDBI Trusteeship Services is the Debenture Trustee for the Issue. Link Intime India is the Registrar.
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