Muthoot FinCorp launches Tranche VI NCD issue to raise ₹290 crore

The NCDs offer flexible tenures from 24 to 72 months with monthly, annual, and cumulative payouts and aim to raise up to Rs 290 crore within the Rs 2,000 crore shelf limit

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Muthoot FinCorp (MFL), the flagship company of the 138-year-old Muthoot Pappachan Group (Muthoot Blue), has launched the Tranche VI issue of secured, redeemable non-convertible debentures (NCDs), with a total size of up to ₹290 crore.

 

The issue opened on Friday (July 4), and will close on July 17, with an option for early closure.

 

The Tranche VI issue has a base size of ₹100 crore with a green shoe option of ₹190 crore, aggregating to ₹290 crore. Each NCD has a face value of ₹1,000. 

 

The NCDs under Tranche VI are being offered with maturity/tenure options of 24, 36, 60 and 72 months, with monthly, annual and cumulative interest payment options.

 

Effective yield (per annum) for the NCD holders ranges from 9.2 per cent to 9.8 per cent.

 

This offering is intended to support lending, financing and for repayment/prepayment of interest and principal on existing borrowings, and to meet general corporate requirements.

 

 Muthoot FinCorp’s plan of ₹290 crore is within the shelf limit of ₹2,000 crore.

 

These NCDs have been rated 'Crisil AA-/Stable' (pronounced as CRISIL double A minus rating with a stable outlook) by CRISIL Ratings. It reflects the high degree of safety regarding timely service of financial obligations, the company said.

 

It is proposed that these NCDs will be listed on the debt market segment of the BSE.