Muthoot Finance to raise Rs 700 crore via public issue of non-convertible debentures

Muthoot Finance on Thursday, September 21, announced its 32nd series of Public Issue of Secured Redeemable Non-Convertible Debentures of face value of Rs 1,000 each (Secured NCDs). The issue has a base size of Rs 100 crore with an option to retain oversubscription up to Rs 600 crore, aggregating to a tranche limit of Rs 700 crore.

The issue is available till October 6, 2023, with an option to close on earlier date or extended date, as may be decided by the Board of Directors or the NCD committee. The NCDs are proposed to be listed on BSE. The allotment will be on first come first serve basis.

The secured NCDs proposed to be issued have been rated

There are 7 investment options for secured NCDs with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payments with interest rate ranging from 8.75 percent p.a to 9.00 percent p.a. for individual investors and corporate investors.

Speaking on the NCD issue, George Alexander Muthoot, Managing Director, Muthoot Finance, said “Our 32nd NCD issue is open for subscription, and the interest rate offered on NCDs has been increased by 0.50 percent. Compared to other available investment avenues, our NCDs, rated ‘AA+/Stable’, offer an attractive investment option. As part of this issue, our retail individual investors will receive 1 percent p.a. more than the interest rate applicable to institutions and corporates. We are hoping for an increased interest from the market and our investors for this issue.”

The funds raised through this issue will be utilised primarily for lending activities of the company. The lead manager to the issue is AK Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the Issue. Link Intime India Private Limited is the Registrar to the Issue.