Muthoot Finance Ltd has announced its 22nd series of public issue of secured redeemable non-convertible debentures (NCD).
The issue is with a base issue size of Rs 100 crore with an option to retain over subscription up to Rs690 crore aggregating up to tranche limit of Rs790 crores (“Tranche IV issue”).
The issue opens on November 29 and closes on December 24 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 issue, which is rated by CRISIL Ltd and ICRA Ltd, have awarded long term debt rating of ‘AA/Stable’ for the debentures offered under the issue. The rating scale denotes ‘high degree of safety regarding timely servicing of financial obligations and very low credit risk’.
The NCDs are proposed to be listed on the Bombay Stock Exchange (BSE) and the allotment is based on first-come-first-serve basis.
There are 10 investment options for secured NCDs with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payments with effective yield p.a. ranging from 9.25 per cent to 10 per cent.
George Alexander Muthoot, Managing Director, Muthoot Finance said that the issue would help the company to have long term funds and diversify borrowing baskets as well. The previous NCD issues were well received in the market and were oversubscribed. It provides an opportunity to retail and high networth individual investors, to whom we have allocated 80 per cent of the total issue size, with stable and attractive long term returns when there are only limited comparable alternative avenues for investments, he added.
The funds raised through this issue will be utilised primarily for lending activities of the company.
The lead managers to the issue are Edelweiss Financial Services Limited and A K Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the issue. Link Intime India Private Limited is the registrar to the issue.