Gold loan company Muthoot Finance Ltd on Tuesday (January 2) unveiled its 33rd series of public issue of secured redeemable non-convertible debentures (NCDs) with a face value of ₹1,000 each.
The base issue size is set at ₹100 crore, with an option to retain oversubscription up to ₹900 crore, aggregating up to a tranche limit of ₹1,000 crore, according to a stock exchange filing.
The issuance is scheduled to open on January 8, 2024, and will conclude on January 19, 2024, with the flexibility to close on an earlier or extended date as determined by the board of directors or the NCD committee.
The secured NCDs offered under this issue have garnered a favourable AA+ (Stable) rating by ICRA, signifying a "high degree of safety regarding timely servicing of financial obligations."
Additionally, CRISIL Ratings has accorded the company a rating of AA+ with a 'Stable' outlook. The proposed NCDs are slated for listing on BSE, and the allotment will follow on a first-come-first-serve basis, the company said.
Investors can choose from seven investment options for secured NCDs, with varying interest payment frequencies such as monthly or annual, along with an option for 'on maturity redemption' payments. The interest rates range from 8.75-9% per annum, catering to both individual and corporate investors.
The lead managers to the issue is AK Capital Services Ltd. IDBI Trusteeship Services Ltd is the debenture trustee for the issue. Link Intime India Private Ltd is the registrar of the issue.
George Alexander Muthoot, Managing Director of Muthoot Finance, said, "Our 33rd NCD issue is open for subscription, and allows investors to get the twin advantages of better rating as well as an attractive interest rate ranging from 8.75% to 9% p.a."
"95% of the issue is allocated for companies and individual investors who will be getting 0.50% p.a more interest rate than that applicable for institutions," Muthoot said.
Shares of Muthoot Finance Ltd ended at ₹1,452.40, down by ₹15.50, or 1.06%, on the BSE.
