Muthoot Finance to raise up to Rs300 cr through NCD issue

Muthoot Finance to raise up to Rs300 cr through NCD issue

BBN Bureau

Public issue of debentures to commence on May 25

KOCHI/May 24-2022: Muthoot Finance Ltd is aiming to raise up to Rs300 crore through a public issue of secured non-convertible debentures (NCDs).

A statement from Muthoot said this is company’s 27th series of Public Issue of Secured Redeemable Non-Convertible Debentures and the face value of the NCDs has been pegged at Rs1000 each.

The Issue is with a base issue size of Rs75 crore with an option to retain oversubscription up to Rs225 crore aggregating up to tranche limit of Rs300 crore.

“The Issue opens on May 25, 2022 and closes on June 17, 2022 with an option to close on such earlier date or extended date as may be decided by the board of directors or NCD Committee,” the company statement further said.

The Secured NCDs proposed to be offered under this issue have been rated [ICRA] AA+ (Stable) by ICRA indicating 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 first come first serve basis.

George Alexander Muthoot, Managing Director, Muthoot Finance, said the company has allocated 90 per cent of the issue for retail and high net worth individual investors, who will be getting 0.50 per cent more than the interest rate applicable for institutions and corporates.

The Lead Manager to the Issue is A K Capital Services Ltd. IDBI Trusteeship Services Ltd is the Debenture Trustee for the Issue whereas, Link Intime India Pvt Ltd is the Registrar to the Issue.

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