Muthoot Finance raises Rs.1000 crores via Secured NCDs

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Muthoot Finance Ltd has announced to raise Rs. 1,000 crores through the Public Issue of Secured Redeemable Non-Convertible Debentures (Secured NCDs). The company is going ahead with a base issue of Rs.100 crores with an alternative to hold on oversubscription up to Rs.900 crores accumulating up to share limit of Rs.1000 crores. The Public Issue of Secured Redeemable Non- Convertible Debentures are open now and with a plan to close on January 5, 2021, as such earlier date or an extended date as may be announced by the Board of Directors or NCD committee.

The company said that Secured NCDs decided to be issued under this Issue has been rated [ICRA] AA (Stable) by ICRA and CRISIL AA/Positive by CRISIL. The Secured NCDs have been rated by the CRISIL and ICRA shows that there is a high degree of security concerns for timely servicing of financial obligations.

The NCDs are planned to be listed on BSE. The allotment would be on the first come first serve basis. There are six funding alternatives for Secured NCD’s with Monthly or annual interest payment cycle or on matured redemption payments with coupon starting varying from 6.75% to 7.75% p.a. The fund issue leading managers would be J M Financial Limited, Equirus Capital Private Limited, Edelweiss Financial Services Limited, and A. K. Capital Services Limited. The Registrar of the Issue would be Link Intime India Private Limited. The Debenture Trustee of the Issue would be IDBI Trusteeship Services Limited. Muthoot Finance Ltd has trading at Rs.1,196.50 per piece up by Rs.11.3 or 0.95% on the BSE.

George Alexander Muthoot, MD of Muthoot Finance Ltd stated that in their 24th public issue of Non-Convertible Debentures, the company is focusing on retail and highest net worth individual investors and they have allocated 90% of the issue for their segment. At the time when interest rates have significantly come down, the company would provide attractive interest rates to retail and high net worth to individual investors. The company looks forward to the market for the current issue as there are only limited investment avenues accessible. The funds raised through this issue would be used initially for the lending activities of the company.

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