Muthoot Fincorp launches public issue of NCDs for Rs 500 crore

KR Srivats New Delhi | Updated on September 21, 2019 Published on September 21, 2019

Thomas John Muthoot. File photo

Muthoot Fincorp Limited, the flagship company of Muthoot Pappachan Group has launched Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs) to raise ₹ 250 crore, with an option to retain over subscription up to ₹ 250 crore, aggregating to ₹ 500 crore.

The funds raised will primarily be used to augment the working capital and requisite lending.

The company had received board approval to raise NCDs in the aggregate amounts of upto ₹ 900 crore. The first tranche of the issue, with the face value of ₹ 1,000 each and minimum ticket size of ₹ 10,000(10 NCDs) opened on Friday (September 20) and will close by Friday, 18th October 2019.

There will be 8 schemes, with tenure options of 400 days, 24 months and 36 months, offering customers returns with interest rates ranging from 9.38 per cent to 11.03 per cent. The issue has received a credit rating of “BWR A+” with stable outlook by Brickwork Rating India Private Limited.

Commenting on the proposed NCD issue, Thomas John Muthoot, Chairman - Muthoot Pappachan Group and Managing Director - Muthoot Fincorp Limited, said, “Muthoot Fincorp has been doing well on the back of a diversified portfolio which is designed to meet lifecycle needs of the customers. In-spite of the prevailing market conditions, the company has been experiencing a healthy demand for gold and MSME loans. On that account, we have decided to come up with an NCD issue to help meet the company’s increasing working capital needs”.

Published on September 21, 2019
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