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Muthoot Fincorp’s first public issue of Crisil A-rated secured, redeemable non-convertible debentures (NCDs) for Rs 100 crore has been oversubscribed.
The issue had an option to retain over subscription of Rs 100 crore and got fully subscribed two weeks in advance of the closing date.
It offered an interest rate between10.75 per cent to 12 per cent depending on the selected scheme. SMC Capitals were the lead manager to the issue.
Thomas John Muthoot, Chairman and Managing Director, Muthoot Fincorp, said that it received positive response from retail investors, qualified institutional buyers and non-institutional investors alike.
“The NCD offers value to investors looking for safety and attractive returns as well. The funds raised will be used for building up of the company’s loan portfolio,’’ he said.
Muthoot Fincorp is a provider of mass finance in the form of gold loans. Among the largest gold loan companies, it claims an average of 50,000 walk-in customers per day.
The company has a diverse mix of retail offerings, including loan products, money transfer, foreign exchange, insurance services and wealth management services.
The net worth as on March 31, 2014, is Rs 1,249.85 crore and capital adequacy ratio is 21.01 per cent.
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