Muthoot Finance to raise Rs 300 crore through NCDs

7 Oct 2022 , 08:46 AM

By issuing secured redeemable non-convertible debentures (NCDs) with a face value of Rs1,000 apiece, Muthoot Finance Ltd. claims it would raise Rs300 crore. The NCD committee or the board of directors may decide to close this issue earlier than October 28 or keep it open longer. This issue will be available from October 6 to October 28. The issuance includes a base size of Rs 75 crore and an option to maintain subscriptions up to Rs225 crore.

According to ICRA, the proposed NCDs have a “high degree of safety regarding timely servicing of financial obligations” and are classified as AA+ (Stable). First, come, first-served is the main criterion for allocating the proposed NCDs to the investors. Individual investors have seven alternatives from Muthoot Finance for secured NCDs with monthly or annual interest payment frequency or “on maturity redemption” payments with coupons between 7.5% and 8% per year.

The company’s lending operations will be supported by the money obtained through the offering. The issue’s primary manager is A K Capital Services Limited. The trustee for the debenture is IDBI Trusteeship Services. The registrar is called Link Intime India Private.

For feedback and suggestions, write to us at [e-mail]