Muthoot Finance Ltd. to raise Rs. 500 crores through Public Issue of Secured Redeemable Non-Convertible Debentures
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Kochi, February 07, 2023: Muthoot Finance Ltd has announced its 30th series of Public Issue of Secured Redeemable Non-Convertible Debentures (Secured NCDs) of the face value of Rs. 1,000 each. The Issue is with a base issue size of ? 100 crores with an option to retain oversubscription up to ? 400 crores aggregating up to a tranche limit of ? 500 crores (“Issue”). The issue will open on February 08, 2023, and close on March 03, 2023, with an option to close on such an earlier date or an extended date as may be decided by the Board of Directors or NCD committee.
The Secured NCDs proposed to be issued under this Issue have been rated [ICRA] 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 NCDs are proposed to be listed on BSE and the allotment will be on a first come first serve basis.
There are 7 investment options for Secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments with interest rates ranging from 8.25% p.a to 8.60% p.a. for Individual Investors.
Speaking on their 30th NCD issue, Mr. George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said, “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%, 0.40%, 0.35% p.a. for tenors of 2, 3 and 5 years respectively. This decision has been taken for the benefit of our investors. Considering our AA+/Stable rating, the rates offered are very attractive in comparison to similar available other investment avenues. We have allocated 90% of the issue for retail and high-net-worth individual investors who will be getting 0.50% p.a more than the interest rate applicable for institutions and corporates. We expect a positive response from the market for the current issue.”
The funds raised through this issue will be utilized primarily for the lending activities of the Company.
The Lead Manager to the Issue is A. K. 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
