Muthoot Finance, the largest gold financing company in India, has announced its 18th series of public issue of non-convertible redeemable debentures.
The company has filed a Shelf Prospectus for issue of secured redeemable NCDs of face value ₹1,000 each aggregating up to ₹3,000 crore (‘Shelf Limit’). The tranche I issue is with a base issue size of ₹500 crore with an option to retain oversubscription up to shelf limit of ₹3,000 crore.
The issue opens on April 9 and closes on May 8 with an option to close earlier and/or extend up to a period as may be determined by a duly authorised committee of the Board.
The issue is rated by two credit rating agencies — Crisil and ICRA. Both agencies have awarded long-term debt rating of “AA/Stable” for the debentures.
The NCDs are proposed to be listed on the BSE.
According to George Alexander Muthoot, MD, Muthoot Finance, the issue provides an opportunity to retail and high networth individual investors, to whom the company has allocated 60 per cent of the total issue size, an opportunity to have stable and attractive long-term returns when there are only limited comparable alternative avenues for investments. The funds raised through this issue will be utilised primarily for lending activities of the company.
There are 10 investment options for Secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with effective yields ranging 8-9 per cent a year.