Muthoot Finance to Raise Rs 300 Crore, To Issue Secured Redeemable NCDs

Muthoot Finance on Friday has announced its 31st public issue of secured redeemable non-convertible debentures (NCDs) of the face value of Rs 1,000 each. The base size of the issue is Rs 75 crore with an option to retain oversubscription up to Rs 225 crore, aggregating up to a tranche limit of Rs 300 crore.

“The Issue opened on April 12, 2023, and closes on April 26, 2023, with an option to close on an earlier date or to an extended date, as may be decided by the Board of Directors or the NCD committee. The Secured NCDs proposed to be issued under this Issue have been rated AA+ (Stable) by ICRA. This rating of the Secured NCDs indicates a ‘high degree of safety regarding timely servicing of financial obligations’. The NCDs are proposed to be listed on BSE and the allotment will be on a first come first serve basis,” Muthoot Finance said in a statement.

There are 7 investment options for Secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments with interest rates ranging from 8.25 per cent per annual to 8.60 per cent per annual for Individual Investors.

George Alexander Muthoot, managing director of Muthoot Finance, said, “Our 31st NCD issue is open for subscription and the interest rate offered on our NCDs are in line with the prevailing interest rates, especially subsequent to the RBI pause on repo rate hike in the April 2023 monetary policy. As such, in comparison to similar available other investment avenues, our NCDs are rated ‘AA+/Stable’ and are an attractive investment option.”

He added that the company has allocated 90 per cent of the issue for retail and high networth individual investors who will be getting 0.50 per cent per annum more than the interest rate applicable for institutions and corporates. “We expect a good response from the market for our issue.”

The funds raised through this issue will be utilised primarily for lending activities of the Company.

The Lead Manager to the Issue is 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.

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