Muthoot Finance Ltd to raise Rs. 2,000 crores through Public Issue of Secured Redeemable Non-Convertible Debentures
By Pinkerala News Desk | Oct 27, 2020
Muthoot Finance Ltd has announced its 23rd series of Public Issue of Secured Redeemable Non-Convertible Debentures of the face value of Rs. 1,000 each (“Secured NCDs”). The Issue is with a base issue size of ₹ 100 crores with an option to retain oversubscription up to ₹ 1900 crores aggregating up to a tranche limit of ₹ 2000 crores (“Issue”). The Issue opens on October 27, 2020, and closes on November 20, 2020, with an option to close on such an earlier date or an extended date as may be decided by the Board of Directors or NCD committee.
The Secured NCDs proposed to be issued under this Issue have been rated CRISIL AA/Positive by CRISIL and [ICRA] AA (Stable) by ICRA. The rating of the Secured NCDs by CRISIL and ICRA indicates a “high degree of safety regarding timely servicing of financial obligations”.
The NCDs are proposed to be listed on BSE. The allotment will be on a first come first serve basis.
There are 6 investment options for Secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments with coupon ranging from 7.15% p.a to 8.00% p.a.
Mr.George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said “In the present scenario of lower interest rates and expectations of interest rates falling further, our issue offers safe long-term investment options with high stable returns to investors. The issue will augment the company’s long-term funding requirements thereby supporting the stable growth that our company envisages.
We expect the current issue to be well received by the market in line with our previous NCD issues as there are limited comparable investment avenues available.”
The funds raised through this issue will be utilized primarily for the lending activities of the Company.
The Lead Managers to the Issue are Edelweiss Financial Services Limited, J M Financial Limited, Equirus Capital Private Limited and 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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