Muthoot Fincorp, a Non-Banking Finance Company (NBFC) is set to launch a secured, redeemable, non-convertible debenture that will offer effective returns in the range of 8.3-9.37 per cent. The public issue of NCDs will be open for subscription from January 5 to January 28, 2022. The face value of each NCD is 1,000.
The base size of the issue is 200 crore with greenshoe option to increase it 400 million.
The prospectus filed with SEBI states that the company will maintain a minimum 100% security cover on the outstanding amount of NCDs and interest earned thereon.
The issue comes with five different tenors – 27, 38, 60, 72 and 96 months – with both monthly payout and cumulative options. CRISIL has rated the issue as A+ with a stable outlook. Instruments with this rating are considered to have adequate security with respect to timely fulfillment of financial obligations and to carry low credit risk. Note that, instruments with an AAA rating have the highest level of protection and have the lowest credit risk.
Minimum application will be 10 NCDs, which is 10,000 (in all NCD options). The aggregate value of applications of individual residents or HUF cannot exceed 10 lakhs.
The NCDs will be listed on BSE within 6 working days from the date of closure of the issue.
The debenture holder can nominate any one person in Form No. SH.13, in which the allotted NCD, if any, will vest in the event of death of the applicant. Where nomination is made in respect of an NCD held jointly by more than one person, all the joint holders shall together nominate any person as a nominee in Form No. SH.13.
The funds raised through the issue will be used for working capital and general corporate purposes.
Muthoot Fincorp is a non-deposit taking, systemically important NBFC registered with RBI and engaged in gold loan business for over a decade and is headquartered in Kerala.
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