Muthoot Finance to raise Rs 500-cr via public issue of NCDs

Muthoot Finance today said it has filed a draft prospectus with the Bombay Stock Exchange (BSE) for a public issue of secured non-convertible debentures of face value of Rs 1,000 each.

The company plans to issue NCDs aggregating up to Rs 250 crore with an option to retain over-subscription up to Rs 250 crore for issue of additional NCDs, aggregating to a total of up to Rs 500 crore. The issue is expected to be launched in the February-March, a company statement said here.

ICICI Securities, HDFC Bank, JM Financial Consultants, Karvy Investor Services, RR Investors Capital Services and YES Bank are the lead managers to the issue. IDBI Trusteeship Services will act as the debenture trustee for the Issue.

The issue is rated by CRISIL and ICRA with AA-/stable rating. Earlier in the months of August, 2011 and January, 2012, company raised Rs 693 crore and Rs 459 crore, respectively through similar issues, the release said.

"The objective of the Issue is to diversify the resource profile of the company as well as to seek wider participation from retail investors. We expect the issue to provide an attractive investment option to retail investors, HNIs, Corporates and Institutions," Muthoot Finance Managing Director George Alexander Muthoot said.