Muthoot Finance to raise INR 1000 crore

The issue is with a base issue size of INR 100 crores with an option to retain oversubscription upto INR 900 crores aggregating upto tranche limit of INR 1000 crores (“Tranche II issue”).

Muthoot Finance Ltd has announced its 20th series of Public Issue of Secured Redeemable Non-convertible Debentures. 

The issue opened on May 10, 2019 and closes on June 10, 2019 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 issue is rated by two Credit Rating Agencies – CRISIL Ltd and ICRA Ltd. Both agencies have awarded long term debt rating of ‘AA/Stable’ for the debentures offered under the issue. The rating scale denotes ‘High degree of safety regarding timely servicing of financial obligations and very low credit risk’.

The NCDs are proposed to be listed on BSE Limited.

There are ten investment options for Secured NCDs with Monthly or Annual interest payment frequency or on maturity redemption payments with effective yield p.a. ranging from 9.25% to 10.00%.

George Alexander Muthoot , Managing Director, Muthoot Finance, said “The issue will help the company to have long term funds and diversify borrowing basket as well.It provides an opportunity to Retail and High Networth Individual investors, to whom we have allocated 80% of the total issue size, an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments.”

The funds raised through this issue will be utilised primarily for lending activities of the Company. As per the bidding data available on BSE, bidding has been done to the extent of Rs.155crs as on May 14, 2019.

The Lead Managers to the issue are Edelweiss Financial Services Limited and 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.