Muthoot Finance to raise Rs 2,000 crore via debenture issue

Muthoot Finance Ltd, a gold financing company in India, has announced its 17th series of Public Issue of non-convertible redeemable debentures of face value of Rs 1,000 each aggregating upto Rs 1,950 crores and Unsecured Redeemable Non-Convertible Debentures (“Unsecured NCDs”) of face value of Rs 1,000 each aggregating upto Rs 50 crores, totalling upto Rs 2,000 crores. The tranche issue is with a base issue size of Rs 200 crores with an option to retain oversubscription upto shelf limit of Rs 2,000 crores.

The issue opens on 11 April, 2017 and closes on 10 May, 2017 with an option to close earlier and/or extend up to a period as may be determined by a duly authorised committee of the Board.

Reuters

Reuters

The issue is rated by two Credit Rating Agencies - CRISIL and ICRA. Both agencies have awarded long term debt rating of “AA/Stable” for the debentures offered under the issue.

George Alexander, MD, Muthoot Finance said, “The issue provides an opportunity to retail and high networth individual (HNIs) investors, to whom we have allocated 60 percent of the total issue size. ”

The NCDs are proposed to be listed on BSE Limited. There are 10 investment options for Secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with effective yield per annum ranging from 8 percent to 9 percent. The investment option for Unsecured NCDs is a scheme which doubles the invested amount in 96 months with an effective yield per annum of 9.06 percent.

The funds raised through this issue will be utilised primarily for lending activities of the Company.

 


Updated Date: Apr 10, 2017 17:31 PM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'