Muthoot Finance to raise ₹700 crore via issue of non-convertible debentures
Muthoot Finance Ltd on Thursday announced its 32nd series of public issue of secured redeemable non-convertible debentures of face value of ₹1,000 each. The issue has a base size of ₹100 crore with an option to retain oversubscription up to ₹600 crore, aggregating to a tranche limit of ₹700 crores. The issue, which opened on September 21, will close on October 6, with an option to close on an earlier date or extended date, as may be decided by the Board of Directors or the NCD committee.
“The Secured NCDs proposed to be issued under this Issue have been rated [ICRA] AA+ (Stable) by ICRA. This rating indicates a high degree of safety regarding timely servicing of financial obligations," Muthoot Finance said in a release. The NCDs are proposed to be listed on BSE, while the allotment will be on a first come first serve basis.
Also Read: Tech Mahindra’s turnaround in the offing; ICICI Securities upgrades stock to Buy, raises target price “Our 32nd NCD issue is open for subscription, and the interest rate offered on NCDs has been increased by 0.50%. Compared to other available investment avenues, our NCDs, rated ‘AA+/Stable’, offer an attractive investment option. This provides our investors a dual advantage of a higher rating and attractive interest rate ranging 8.75% to 9% p.a," said George Alexander Muthoot, Managing Director, Muthoot Finance Ltd.
As part of this issue, our retail individual investors will receive 1% p.a. more than the interest rate applicable to institutions and corporates 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% p.a to 9.00% p.a. for Individual Investors and Corporate
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