Muthoot Capital Services has successfully raised ₹165 crore of Tier-I capital through the Qualified Institutional Placement route.
The issue enhances the capital adequacy position of the company as on September 30 to 26.7 per cent from 15.4. The debt leveraging based on the September 30 figures adjusted for the equity infusion through the QIP is at 2.9 times.
Mutual fund majors such as Birla, DSP BlackRock, IDBI, SBI, Sundaram and other investors such as Morgan Stanley France, Aurigin Master Fund Singapore and Goldman Sachs, participated in the QIP. Thomas George Muthoot, Managing Director, said, “In the last 18 months, we have made steady progress in diversifying outside south India, controlling operating costs and improving asset quality. The capital raised will strengthen our balance sheet, facilitate growth and lower our borrowing costs. It will also be an impetus for further growth and moving into new products.”
According to Madhu Alexiouse, Chief Operating Officer, the company is targeting higher growth for the next few years and also looking at additional sources of funding, including NCDs and more securitisation transactions.
After the QIP, the promoter stake has come down to 62.5 per cent from 74.93 per cent.
On Tuesday, Muthoot Capital stock closed 1.1 per cent lower at ₹598.35 on the BSE.