Muthoot Finance to raise Rs 3000 crore through Public Issue of NCD
Kochi: Muthoot Finance Ltd, the largest gold financing company in India, has announced its 18th series of Public Issue of Non-convertible Redeemable Debentures. Company has filed a Shelf Prospectus for issue of Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of face value of ₹ 1,000 each aggregating upto Rs 3000 crores (“Shelf Limit”).
The Tranche issue is with a base issue size of Rs 500 crores with an option to retain oversubscription upto shelf limit of ₹ 3000 crores (“Tranche I issue”).
The issue opens on April 09, 2018 and closes on May 08, 2018 with an option to close earlier and/or extend upto a period as may be determined by a duly authorised committee of the Board.
The issue is rated by two Credit Rating Agencies - CRISIL and ICRA. Both agencies have awarded long term debt rating of “AA/Stable” for the debentures offered under the issue. The rating scale denotes “High degree of safety regarding timely servicing of financial obligations and very low credit risk”.
The NCDs are proposed to be listed on BSE Limited. On the occasion, Mr George Alexander Muthoot, MD, Muthoot Finance said, “The issue provides an opportunity to retail and high networth individual (HNIs) investors, to whom we have allocated 60 per cent of the total issue size, an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments. The funds raised through this issue will be utilised primarily for lending activities of the Company”
There are ten investment options for Secured NCDs with Monthly or Annual interest payment frequency or on maturity redemption payments with effective yield p.a. ranging from 8.00 per cent to 9.00 per cent.
The Lead Managers to the issue are Edelweiss Financial Services Limited and A K Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee. Link Intime India Private Limited is the Registrar to the Issue.
