Muthoot Finance to raise ₹700 crore via issue of non-convertible debentures

The issue, which opened on September 21, will close on October 6, with an option to close on an earlier date or extended date, as may be decided by the Board of Directors or the NCD committee.

“The Secured NCDs proposed to be issued under this Issue have been rated [ICRA] AA+ (Stable) by ICRA. This rating indicates a high degree of safety regarding timely servicing of financial obligations,” Muthoot Finance said in a release.

The NCDs are proposed to be listed on BSE, while the allotment will be on a first come first serve basis.

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“Our 32nd NCD issue is open for subscription, and the interest rate offered on NCDs has been increased by 0.50%. Compared to other available investment avenues, our NCDs, rated ‘AA+/Stable’, offer an attractive investment option. This provides our investors a dual advantage of a higher rating and attractive interest rate ranging 8.75% to 9% p.a,” said George Alexander Muthoot, Managing Director, Muthoot Finance Ltd. 

As part of this issue, our retail individual investors will receive 1% p.a. more than the interest rate applicable to institutions and corporates

There are 7 investment options for Secured NCDs with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payments with interest rate ranging from 8.75% p.a to 9.00% p.a. for Individual Investors and Corporate Investors, the company said.

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The company proposes to utilize the funds raised through this issue primarily for its lending activities.

A K Capital Services Limited is the lead manager to the Issue, while IDBI Trusteeship Services Limited is the Debenture Trustee for the Issue. Link Intime India Private Limited is the Registrar to the Issue.

At 10:50 am, Muthoot Finance share price was trading 0.29% lower at ₹1,274.05 apiece on the BSE.

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Updated: 22 Sep 2023, 10:54 AM IST