The issue opens on April 12, 2023 and will close on April 26, 2023, with an option to close on an earlier date or an extended date.
The base size of the issue is Rs 75 crore with an option to retain oversubscription up to Rs 225 crore, subject to a tranche limit of Rs 300 crore.
Muthoot Finance on Friday announced its 31st public issue of secured redeemable non-convertible debentures (NCDs) of face value of Rs 1,000 each. The base size of the issue is Rs 75 crore with an option to retain oversubscription up to Rs 225 crore, subject to a tranche limit of Rs 300 crore.
“The issue opens on April 12, 2023 and closes on April 26, 2023, with an option to close on an earlier date or an extended date, as may be decided by the Board of Directors or the NCD Committee. The secured NCDs to be issued under this issue have been assigned AA+ (Stable) rating by ICRA. This rating of secured NCDs indicates a ‘high degree of safety with respect to timely servicing of financial obligations’. The NCDs are proposed to be listed on BSE and allotment will be on first come first serve basis, Muthoot Finance said in a statement.
There are 7 investment options with interest rates ranging from 8.25 per cent per annum to 8.60 per cent per annum for individual investors with ‘monthly’ or ‘annual’ interest payment frequency or ‘maturity redemption’ payments for secured NCDs.
George Alexander Muthoot, Managing Director, Muthoot Finance said, “Our 31st NCD is open for subscription and the interest rates offered on our NCDs are in line with the prevailing interest rates, especially after the RBI put a hold on the repo rate hike. monetary policy 2023. Thus, compared to other similar investment options available, our NCDs are rated ‘AA+/Stable’ and are an attractive investment option.”
He said the company has allocated 90 per cent of the issue for retail and high net worth individual investors, who will get 0.50 per cent annualized interest rate over and above the interest rate applicable to institutions and corporates. We expect a good response from the market for our issue.
The funds raised through this issue will be primarily used for lending activities of the company.
The lead manager to the issue is AK 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.
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