Money & Banking

Muthoot Finance mulls Rs 300-cr NCD issue

K. R. Srivats New Delhi | Updated on August 13, 2013 Published on August 13, 2013

Gold loan company Muthoot Finance Ltd has filed a draft prospectus with capital markets regulator SEBI for a non-convertible debenture (NCD) issue that could help the company mobilise as much as Rs 300 crore.

While the public issue size is Rs 150 crore, the company would have the option to retain oversubscription of Rs 150 crore through issuance of additional bonds. Investors will also have the option to buy either secured or unsecured NCDs.

The company plans to launch the NCD issue this month itself, Oommen Mammen, Chief Financial Officer, Muthoot Finance told Business Line.

For Muthoot Finance, this will be the fifth NCD issue. The company had floated four listed NCD issues in recent years, mopping up Rs 1,700 crore. For the first time, Muthoot Finance is offering NCDs for a short tenure of 400 days. Monthly interest will also be given to investors for NCDs with tenure of two, three and five years.

The tenor for NCDs will range from 400 days to six years.

This NCD issue is sought to be launched in the backdrop of tight liquidity and tough market conditions.

The issue size has been decided after studying the market conditions, Mammen said.


Published on August 13, 2013
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