Money & Banking

Muthoot Finance announces ₹300-crore NCD issue

BL Kochi Bureau | | Updated on: May 24, 2022
George Alexander Muthoot, Managing Director, Muthoot Finance Ltd

George Alexander Muthoot, Managing Director, Muthoot Finance Ltd | Photo Credit: Kesavan A N 1612@Chennai

The issue opens on May 25 and closes on June 17

Muthoot Finance Ltd has announced public issue of Secured Redeemable Non-Convertible Debentures of face value of ₹1,000 each.

The issue is with a base issue size of ₹75 crore with an option to retain over subscription up to ₹ 225 crore aggregating up to tranche limit of ₹300 crore.

The issue opens on May 25 and closes on June 17 with an option to close on such earlier date or extended date as may be decided by the Board of Directors or NCD committee.

The Secured NCDs, proposed to be issued, have been rated AA+ (Stable) by ICRA. The rating of the Secured NCDs by ICRA indicates “high degree of safety regarding timely servicing of financial obligations”.

The NCDs are proposed to be listed on the BSE. The allotment will be on first-come-first-serve basis.

Investment options

There are seven investment options for Secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments with coupon ranging from 7.25 to 8 per cent p.a.

George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said, “We have allocated 90 per cent of the issue for retail and high networth individual investors who will be getting 0.50 per cent p.a more than the interest rate applicable for institutions and corporates. Moreover, interest rates have been increased by 0.25 per cent p.a. in this issue compared to the previous issue. In the issue, investors get the twin advantage of better rating as well as attractive interest rate. We have also has seven-year NCD for those investors who want to lock in the interest rates for long period as well as reduce the uncertainty of fluctuations in interest rates in future. We are expecting a good response for the issue.”

The funds raised through the issue will be utilised primarily for lending activities of the company.

The lead manager to the issue is A.K. Capital Services Ltd. IDBI Trusteeship Services Ltd is the Debenture Trustee. Link Intime India Private Ltd is the registrar.

Published on May 24, 2022
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