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Muthoot Finance will next week tap the market with a Rs 300 crore non-convertible debenture (NCD) issue, its Managing Director George Alexander Muthoot has said.
This NCD issue will be for Rs 150 crore with an option to retain over-subscription of Rs 150 crore. The coupon rate on this debt instrument is likely to be 12 percent, Muthoot told BusinessLine.
For Muthoot Finance, this will be the sixth NCD issue. The company had come up with five listed NCD issues in recent years.
The previous NCD issue—which happened in September 2013-- was for Rs 300 crore including the green shoe option of Rs 150 crore. The demand for such NCDs was about Rs 325 crore, it is learnt.
Muthoot sees assets under management (AUM) growth for the current fiscal to be flat.
“I don’t see any growth in the short term—atleast for the next 2-3 quarters. The current negative sentiment has to subside. Growth will finally depend on the policies of the Reserve Bank of India towards gold loan companies”, Muthoot said.
Muthoot Finance on Thursday reported a 21 percent decline in net profit for the second quarter ended September 30 at Rs 211 crore (Rs 268 crore).
This second quarter bottomline performance is however higher than the first quarter net profit of Rs 194 crore.
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