Muthoot Finance would issue non-convertible debentures to raise 700 crore.


On Thursday, Muthoot Finance Ltd. announced the release of its 32nd series of secured redeemable non-convertible debentures with a face value of one thousand rupees each. The basic size of the issuance is 100 crores, and there is an option to keep any oversubscription up to 600 crores, for a total tranche size of 700 crores.

The issue, which began on September 21 and will expire on October 6, may also shut earlier or be open longer according on the Board of Directors’ or NCD committee’s discretion.

ICRA has rated the Secured NCDs that are intended to be issued under this Issue [ICRA] AA+ (Stable). According to a statement from Muthoot Finance, this grade “indicates a high degree of safety regarding timely servicing of financial obligations.”

First-come, first-served allocation is suggested for the NCDs, which will be listed on the BSE.

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“Subscriptions for our 32nd NCD issuance are now being accepted, and the interest rate on NCDs has been raised by 0.50%. Our NCDs, rated “AA+/Stable,” provide an appealing investment opportunity in comparison to other existing investment options. This gives our investors a competitive interest rate ranging from 8.75% to 9% per year, as well as a higher rating, according to George Alexander Muthoot, managing director of Muthoot Finance Ltd.

Our retail individual investors will get 1% annually more as a result of this issue compared to the interest rate that applies to institutions and corporates.

According to the corporation, there are 7 investment alternatives for Secured NCDs with “monthly” or “annual” interest payment frequencies or “on maturity redemption” payments with interest rates ranging from 8.75% p.a. to 9.00% p.a.

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The primary purpose for which the business plans to use the money acquired via this issuance is for lending operations.

The Issue’s lead manager is A K Capital Services Limited, while the Debenture Trustee is IDBI Trusteeship Services Limited. The Issue’s Registrar is Link Intime India Private Limited.

At 10:50 am, the BSE share price of Muthoot Finance was down 0.29% at 1,274.05.


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