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The ₹2000 crore NCD issue of Muthoot Finance has received overwhelming response from high net worth individuals and retail investors. The issue that opened on April 11 closed on Day 2 (April 12).
This was the 17th series of public issue of NCD by the company and it comprised Secured Redeemable Non-Convertible Debentures of face value of ₹1,000 each aggregating up to ₹1950 crore and Unsecured Redeemable Non-Convertible Debentures of face value of ₹1,000 each aggregating up to ₹50 crore, totalling up to ₹2000 crore (Shelf Limit).
The tranche issue was with a base issue size of ₹200 crore with an option to retain over subscription up to shelf limit of ₹2000 crore.
“We had allocated 60 percent of the issue for retail and HNI investor category who are always scouting for an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments. It is our second issue in the 2017 that gathered terrific response from the retail and HNI investors”, George Alexander Muthoot, the company’s Managing Director said.
The NCDs also facilitates the company to raise funds at lower cost and diversify the borrowings as well, he added.
The issue is rated by two Credit Rating Agencies - CRISIL and ICRA. The funds raised issue will be utilised primarily for lending activities of the company.
Earlier in January, Muthoot Finance had completed ₹1400 crore NCD public issue on Day 2.
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