Muthoot Finance to raise Rs 300 crore through secured redeemable NCDs

The issue offers an attractive rate of return of 7.75% to 8.25% to retail and HNI investors

Muthoot Finance Ltd has announced its 29th series of public issue of secured redeemable non-convertible debentures (NCD) of face value of Rs 1,000 each.
 

The issue offers an attractive rate of return of 7.75% to 8.25% to retail and high networth individual investors. The interest rate has been increased by 0.25%-0.35% per annum as compared to the last issue. Indicating a high degree of safety, the proposed NCD issue is rated as AA+ (stable) by ICRA.
 

The issue is with a base issue size of Rs 75 crore with an option to retain oversubscription up to Rs 225 crore aggregating up to a tranche limit of Rs 300 crore (issue). 

The issue is set to open on November 28 and will close on December 19, with an option to close on a much earlier date or on extended date, as may be decided by the board of directors or NCD committee.

The NCDs are proposed to be listed on the Bombay Stock Exchange. The allotment will be on a first-come-first serve basis.
 

Speaking about the NCD issue, George Alexander Muthoot, the managing director of Muthoot Finance Ltd, said, “We plan to utilise these funds in our primary lending activities. With the backdrop of the increase in interest rates by Reserve Bank of India, we have also increased interest rates on NCDs offered in this issue by 0.25%-0.35% per cent pa for tenors of 2,3 and 5 years.

"We value the safety of our investors and assure them with our AA+/stable rating, coupled with an attractive rate of return of 7.75% to 8.25% pa. We expect that the issue will see good demand from investors,” he added.

The lead manager to the issue is AK Capital Services Ltd. IDBI Trusteeship Services Limited is the debenture trustee for the issue. Link Intime India Private Ltd is the registrar to the issue.