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Muthoot Homefin to raise Rs 300 cr via debentures

Press Trust of India  |  New Delhi 

Housing finance company Muthoot Homefin Friday said it will raise up to Rs 300 crore through issue of debentures.

The base size of the issue is Rs 150 crore, with an option to retain oversubscription of a similar amount, aggregating up to Rs 300 crore.

"Muthoot Homefin (India) Ltd, a wholly-owned subsidiary of Muthoot Finance, is proposing a public issue of up to Rs 300 crore by issuing secured redeemable non-convertible debentures (NCDs) of the face value of Rs 1,000 each," the company said in a statement.

The issue will open for subscription on April 8, and is scheduled to close on May 7, 2019, with an option of early closure, and/or extension, it added.

The NCDs would have a tenure are 2, 3.2, 5 and 7.5 years, with monthly or annual interest payment frequency or on maturity redemption payments with effective ranging from 9.25 per cent to 10 per cent.

"The company has completed three years of operations and clocked loan portfolio of Rs 1,835 crore in September 2018. This is our first debt issue and funds raised through the same will be utilised primarily for lending activities of the company," Muthoot Homefin Executive Director Eapen Alexander Muthoot said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 05 2019. 14:20 IST