Muthoot Fin Rs 2,000cr public issue of NCDs opens on Tuesday

Gold loan financier Muthoot Finance Ltd will raise Rs 2,000 crore through a public issue of non- convertible debentures (NCDs) to be launched next week.
Company has filed a shelf prospectus for issue of secured redeemable non-convertible debentures of face value of Rs 1,000 each aggregating Rs 1,950 crore and unsecured NCDs of face value of Rs 1,000 each aggregating Rs 50 crore, totaling up to Rs 2,000 crore, Muthoot Finance said in exchange filing.
Muthoot said funds raised through this issue will be utilised primarily for lending activities.
"The tranche issue is with a base issue size of Rs 200 crore with an option to retain subscription up to shelf limit of Rs 2,000 crore," it said.

This is company's 17th public issue of NCDs, which opens on April 11 and closes on May 10.
"The issue provides an opportunity to retail and high networth individual investors, to whom we have allocated 60 per cent of total issue size, an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments," Muthoot Finance MD George Alexander said.

There are ten investment options for Secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with yield from 8-9 per cent annually.
Investment option for unsecured NCDs is a scheme which doubles invested amount in 96 months with an effective yield of 9.06 per cent per annum, the company said.

Crisil and ICRA have rated the issue with high degree of safety at AA/stable.
Stock of the company traded 0.26 per cent down at Rs 379.95 on BSE.