Muthoot Finance Ltd on Tuesday announced its 30th series of Public Issue of Secured Redeemable Non-Convertible Debentures (Secured NCDs) of a face value of Rs 1,000 each. In a press release, Muthoot Finance said the issue is with a base size of Rs 100 crore, with an option to retain oversubscription of up to Rs 400 crore, aggregating up to a tranche limit of Rs 500 crore.
The issue will open on February 8 and close on March 3, with an option to close earlier or later — to be decided by the company's Board of Directors or its NCD committee.
"The secured NCDs proposed to be issued ... have been rated AA+ (Stable) by ICRA. The rating of the secured NCDs by ICRA indicates a 'high degree of safety regarding timely servicing of financial obligations'," the press release read, adding that the NCDs are proposed to be listed on BSE and that the allotment will be on a first-come-first-served basis.
As per the press release, there are seven investment options for secured NCDs with monthly or annual interest payment frequency, or "on maturity redemption", with annual interest rates ranging from 8.25 to 8.60 percent for individual investors.
“In the light of the recent interest rate hikes by RBI, we have also increased the interest rates in our 30th NCD issue by 0.50 percent, 0.40 percent, 0.35 percent per annum for tenors of 2, 3, and 5 years respectively. We have allocated 90 percent of the issue for retail and high-net-worth individual investors who will be getting 0.50 percent per annum more than the interest rate applicable for institutions and corporates," George Alexander Muthoot, managing director of Muthoot Finance said.
The funds raised through this issue will be utilised primarily for the lending activities of the company.
A K Capital Services Ltd will serve as the lead manager issue, while IDBI Trusteeship Services Ltd is the debenture trustee. Link Intime India Private Ltd is the registrar.
