Muthoot Finance Ltd to raise Rs. 300 crores through Public Issue of Secured Redeemable NCDs

Muthoot Finance Ltd has announced its 27th series of Public Issue of Secured Redeemable Non-Convertible Debentures of face value of Rs. 1,000 each ("Secured NCDs"). The Issue is with a base issue size of ₹ 75 crores with an option to retain oversubscription up to ₹ 225 crores aggregating up to tranche limit of ₹ 300 crores ("Issue"). The Issue opens on 25th, May 2022 and closes on 17th June, 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 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 "high degree of safety regarding timely servicing of financial obligations".

The NCDs are proposed to be listed on BSE. The allotment will be on 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 coupon ranging from 7.25% p.a to 8% p.a.

Mr.George Alexander Muthoot , Managing Director, Muthoot Finance Ltd, said "We have allocated 90% of the issue for retail and high networth individual investors who will be getting 0.50% p.a more than the interest rate applicable for institutions and corporates . Moreover , interest rates have been increased by 0.25% p.a. in this issue compared to the previous issue. In the issue, investors get the twin advantage of better rating as well as attractive interest rate. We have also has 7 year NCD for those investors who want to lock in the interest rates for long period as well as reduce the uncertainty of fluctuations in interest rates in future. We are expecting a good response for the issue."

The funds raised through this issue will be utilised primarily for 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.

Shares of Muthoot Finance Limited was last trading in BSE at Rs. 1161.10 as compared to the previous close of Rs. 1159.55. The total number of shares traded during the day was 9118 in over 1079 trades.

The stock hit an intraday high of Rs. 1188.50 and intraday low of 1152.70. The net turnover during the day was Rs. 10582513.00.

Source : Equity Bulls

Keywords

MuthootFinance INE414G01012 FundRaising SecuredNCDs PublicIssue