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Muthoottu Mini Financiers Ltd has announced the issue of secured, redeemable, non-convertible debentures of the face value of ₹1,000 each at par, aggregating up to ₹200 crore. The issue is now open and scheduled to be closed on December 28.
The base issue size is ₹100 crore with an option to retain over-subscription up to another ₹100 crore. The NCDs are proposed to be listed on BSE. The NCDs have been rated ‘Care BBB+’: Stable.
The company said net proceeds of the issue will be utilised for the purpose of onward lending, financing, and for repayment/prepayment of principal and interest on borrowings of the company (at least 75 per cent and the rest (up to 25 per cent for general corporate purposes.
As on September 30, MMFL had 3,95,175 gold loan accounts, predominately from rural and semi urban areas, aggregating to ₹2,033.66 crores which accounted for 97.41 per cent of its total loans and advances. The yield on its gold loan assets is at 19.39 per cent as at September 30.
In addition to its gold loan business, it offers micro finance loan, depository participant, money transfer, insurance, broking services, PAN card related and travel agency services.
Vivro Financial Services Private Limited is the sole Lead Manager to the Issue, Mitcon Trusteeship Services Limited is the Debenture Trustee of the Issue and Link Intime India Private Limited is the Registrar to the Issue.
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