New Delhi: Muthoot Finance Limited will raise 500 crore through Secured Redeemable Non-Convertible Debentures (NCDs) of face value Rs. 1,000 each. the size of the base issue is 75 crore with an option to retain oversubscription up to Rs. 400 crores, collected up to the installment limit 500 crores. The issue will open on February 8 and close on March 3.
The secured NCDs are rated AA+ as per ICRA rating. The outlook on the long-term rating is stable. There are seven investment options for NCDs, with ‘monthly’ or ‘annual’ interest payment frequency or ‘maturity redemption’ payouts with coupons ranging from 7.75% p.a. to 8.6% p.a.
Who all can apply?
Institutional investors such as public financial institutions, scheduled commercial banks, among others, and non-institutional investors such as cooperative banks and regional rural banks can apply for NCDs. In addition, resident Indian individuals and HUFs can also apply for the issue and earn regular interest payments on the invested amount. They can either subscribe when a company announces NCDs or buy them later in the secondary market. To buy NCDs online, an active demat account and sufficient funds equal to the amount you wish to invest in NCDs are required. Individuals need to login to their demat accounts and place buy orders to buy NCDs online.
You should note that a company is not permitted to give loans against the security of debentures issued through private placement or public issues.
AK Capital Services Limited is the lead manager to the issue. IDBI Trusteeship Services is the Debenture Trustee to the issue, and Link Intime India Private Limited is the Registrar.
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