Muthoot Fincorp has announced a second public issue of secured and redeemable non-convertible debentures (NCDs) of face value of ₹1,000 each for ₹150 crore.
The issue opened yesterday (September 15) and will close on October 15.
It carries an option to retain oversubscription up to ₹150 crore, thus aggregating a total issue size of up to ₹300 crore.
Thomas John Muthoot, Chairman and Managing Director, Muthoot Fincorp, said that the company received an encouraging response to its first NCD, which was oversubscribed much in advance of the original closure date.
The NCDs will be made available through the 3,831 Muthoot Fincorp branches across the country and on the BSE.
The NCDs have been rated ‘CRISIL A/ Stable’ by Crisil. SMC Capitals is the lead manager to the issue.
“We are launching our second NCD with an aim to offer an attractive investment proposition offering up to 12.25 per cent to our retail investor base,” said Thomas John Muthoot.
The funds raised through the issue are proposed to be utilised for building up the company’s loan portfolio.
Investment options
The NCDs offer investors an opportunity to lock in at interest rates of between 10.25 per cent and 12.25 per cent per year depending on the monthly, annual and maturity options. There are 11 investment options available within this range.
While the face value of each NCD is ₹1,000, the minimum investment amount per application for all options of NCDs is ₹10,000.
The NCDs are issued in both physical and demat formats with no TDS applicable for investments in the demat format.
Muthoot Fincorp is among the largest gold loan companies and records an average of 50,000 customer visits per day, according to Thomas John Muthoot.
It has a diverse mix of retail offerings catering to the various customer needs, including loan products, money transfer; foreign exchange, insurance services, and wealth management services.