CHENNAI:
Muthoot Fincorp
Limited has announced a public issue of secured redeemable non-convertible debentures (NCDs) to raise Rs 250 crore, with an option to retain over subscription up to Rs 250 crore, with a total of Rs 500 crore.
The funds raised will primarily be used to augment the working
capital
and requisite lending.
Muthoot Fincorp had received board approval to raise NCDs in the aggregate amounts of up to Rs 900 crore. The first tranche of the issue, with the face value of Rs 1,000 each and minimum ticket size of Rs 10,000, (10 NCDs) opened on September 20, and will close by October 18.
There will be eight schemes, with tenure options of 400 days, 24 months and 36 months, offering customers returns with interest rates ranging from 9.38% to 11.03%. The issue has received a credit rating of “BWR A+” with stable outlook by Brickwork Rating India Private Limited.
Thomas John Muthoot, chairman of Muthoot Pappachan Group and MD of Muthoot Fincorp Limited, said, “Muthoot Fincorp has been doing well on the back of a diversified portfolio which is designed to meet lifecycle needs of the customers. In-spite of the prevailing market conditions, the company has been experiencing a healthy demand for gold and MSME loans."
On that account, the NBFC has decided to come up with an
NCD
issue to help meet the company’s increasing working capital needs.
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