You are here: Home » PTI Stories » National » News
Business Standard

Muthoot Finance to raise Rs 1,000 cr through public issue of bonds

The allotment will be on first come first serve basis

Topics
Muthoot Finance | fund raising | Bonds

Press Trust of India  |  New Delhi 

The company is now valued at $7 billion, a size that may spur MSCI to include the stock in its gauge at the quarterly review due in August
File Photo: The logo of Muthoot Finance is pictured here on a storefront

on Thorsday said it will raise up to Rs 1,000 crore through public issue of to fund its business growth.

In its 24th series of public issue of secured redeemable non-convertible debentures, will issue of face value of Rs 1,000 each with a base size of Rs 100 crore with an option to retain over-subscription up to Rs 900 crore aggregating up to tranche limit of Rs 1,000 crore, it said in a release.

The issue opens on Friday (December 11), and closes on January 5, 2021 with an option to close on such earlier date or extended date as may be decided by the board of directors or NCD committee.

The allotment will be on first come first serve basis.

The non-banking financial company said there are six investment options in the present issue with monthly or annual interest payment frequency or 'on maturity redemption' payments with coupon ranging from 6.75 to 7.75 per cent per annum.

The funds raised through this issue will be utilised primarily for lending activities of the company, said.

"In our 24th public issue of NCDs, we wish to focus on retail and high networth individual investors and we have allocated 90 per cent of the issue for this segment. At a time when interest rates have significantly come down, we are able to offer attractive interest rates to retail and high networth individual investors.

"We look forward for the market to accept the current issue too in line with our previous NCD issues as there are limited comparable investment avenues available," said George Alexander Muthoot, Managing Director, Muthoot Finance.

The are proposed to be issued under this issue have been rated CRISIL AA/Positive by CRISIL and [ICRA] AA (Stable) by ICRA, the company said.

The rating of the secured NCDs by CRISIL and ICRA indicates "high degree of safety regarding timely servicing of financial obligations".

The NCDs are proposed to be listed on the BSE.

The lead managers to the issue are Edelweiss Financial Services, J M Financial, Equirus Capital Pvt Ltd and A K Capital Services Limited. IDBI Trusteeship Services is the debenture trustee and Link Intime India Pvt Ltd is the registrar to the issue.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, December 10 2020. 18:38 IST
RECOMMENDED FOR YOU