Muthoot Finance Ltd has announced its 31st public issue of secured redeemable non-convertible debentures (secured NCDs) of the face value of ₹1,000 each. The issue’s base size is ₹75 crore with an option to retain over-subscription up to ₹225 crore aggregating up to a tranche limit of ₹300 crore (“Issue”).
The issue closes on April 26 with an option to close on an earlier date or to an extended date, as may be decided by the Board of Directors or the NCD committee.
Safe NCDs
The secured NCDs proposed to be issued under this have been rated AA+ (stable) by ICRA. This rating indicates a ‘high degree of safety regarding timely servicing of financial obligations’. The NCDs are proposed to be listed on the BSE and the allotment will be on a first come first serve basis.
There are seven investment options with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ with rates ranging from 8.25 to 8.60 per cent p.a. for individual investors.
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George Alexander Muthoot, Managing Director, Muthoot Finance Ltd,said, “Our 31st NCD issue is open for subscription and the interest rate offered on our NCDs are in line with the prevailing interest rates, especially subsequent to the RBI pause on repo rate hike in the April 2023 monetary policy. As such, in comparison to similar available other investment avenues, our NCDs are rated ‘AA+/Stable’ and are an attractive investment option. We have allocated 90 per cent of the issue for retail and high net worth individual investors who will be getting 0.50 per cent more than the interest rate applicable for institutions and corporates.”
The funds raised through this issue will be utilised for lending activities of the company.