Muthoot Fincorp to raise Rs 1,800 cr via PE, public issue of bonds

First issue of bonds likely in June; part of PE funding to go towards Rs 200 cr capital infusion in Muthoot Microfinance

Muthoot Fincorp, the flagship company of Muthoot Pappachan Group is planning to raise Rs 1,800 crore through Private Equity (PE) and public issue of Non-Convertible Debentures (NCDs) in the current fiscal.

The first public issue of bonds is likely to hit the market in June for Rs 300 crore. "As a group we are looking to raise between Rs 600-800 crore through private equity," said Thomas John Muthoot, chairman and managing director of the company.

Muthoot added that a part of the funding received through PE will go towards capital infusion worth Rs 200 crore in Muthoot Microfinance, the micro finance business unit of Muthoot Fincorp.

The Kerala-based company which recently received licence for non-banking financial companies - micro finance institutions (NBFC-MFIs), is planning to hive off its micro finance business from Muthoot Fincorp. The asset book of its micro finance business currently stands at Rs 1,500 crore. The capital infusion will help to double the asset book in two years.

Data from Securities and Exchange Board of India (Sebi) shows that last fiscal the company had come up with a couple of public issue of bonds in which they had raise Rs 194 crore and Rs 247 crore respectively.