Muthoot Finance to raise ₹300 cr through 28th issue of NCDs

Muthoot Finance has announced their 28th public issue of secured redeemable non-convertible debentures (NCDs) of face value of ₹1,000 each and 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 funds being raised will be utilised primarily for lending activities of the Company.

Rated AA+ (Sable) by ICRA

This issue will be open from Thursday and will close on 28th October with an option to close on such earlier date or extended date as may be decided by the board of directors or the NCD committee, a company spokesperson said. The proposed NCDs have been rated as AA+ (Stable) by ICRA denoting ‘high degree of safety regarding timely servicing of financial obligations.’ The basic criteria to allot the proposed NCDs to the investors is on first come first serve basis. The company offers its individual investors seven investment options for secured NCDs with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payments with coupons ranging from 7.50 per cent to 8.00 per cent p.a.

Expects ‘ample’ subscriptions

George Alexander Muthoot, MD, Muthoot Finance Ltd, sounded confident this edition of NCDs will see an ample of subscriptions as the company has an AA+/stable rating by ICRA and is offering attractive interest rates. “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. As such we expect a good response for the issue. Investors are bound to see this as a great investment option, when compared to similar available avenues”, he added. Lead Manager to the issue is AK Capital Services while IDBI Trusteeship Services is the debenture trustee. Link Intime India is the registrar to the issue.

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