Muthoot Finance Ltd has announced its 32nd series of Public Issue of Secured Redeemable Non-Convertible Debentures of face value of ₹1,000 each (Secured NCDs). The issue has a base size of ₹100 crores with an option to retain oversubscription up to ₹600 crores, aggregating to a tranche limit of ₹700 crores ("Issue"). The issue opens on September 21, 2023 and, closes on October 06, 2023, with an option to close on earlier date or extended date, as may be decided by the Board of Directors or the NCD committee.
The Secured NCDs proposed to be issued under this Issue have been rated [ICRA] AA+ (Stable) by ICRA. This rating indicates "high degree of safety regarding timely servicing of financial obligations".
The NCDs are proposed to be listed on BSE. The allotment will be on first come first serve basis.
There are 7 investment options for Secured NCDs with 'monthly' or 'annual' interest payment frequency or 'on maturity redemption' payments with interest rate ranging from 8.75% p.a to 9.00% p.a. for Individual Investors and Corporate Investors.
Speaking on the NCD issue, Mr. George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said "Our 32nd NCD issue is open for subscription, and the interest rate offered on NCDs has been increased by 0.50%. Compared to other available investment avenues, our NCDs, rated 'AA+/Stable', offer an attractive investment option. This provides our investors a dual advantage of a higher rating and attractive interest rate ranging 8.75% to 9% p.a. As part of this issue, our retail individual investors will receive 1% p.a. more than the interest rate applicable to institutions and corporates. We are hoping for an increased interest from the market and our investors for this issue."
The funds raised through this issue will be utilised primarily for lending activities of the Company.
The Lead Manager to the Issue is A. K. Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the Issue. Link Intime India Private Limited is the Registrar to the Issue.
Shares of Muthoot Finance Limited was last trading in BSE at Rs. 1277.75 as compared to the previous close of Rs. 1299.55. The total number of shares traded during the day was 3662 in over 456 trades.
The stock hit an intraday high of Rs. 1303.10 and intraday low of 1275.35. The net turnover during the day was Rs. 4717405.00.