KOCHI: Muthoot Finance, a gold financing company in India has announced its 18th series of Public Issue of Non-convertible Redeemable Debentures.
In this regard, the company has filed a Shelf Prospectus for issue of Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of face value of Rs.1,000 each aggregating up to Rs.3000 crores (“Shelf Limit”). The tranche issue is with a base issue size of Rs. 500 crores with an option to retain oversubscription up to shelf limit of Rs.3000 crores (“Tranche I issue”).
The issue opens on April 9 and closes on May 8, with an option to close earlier and/or extend up to a period as may be determined by a duly authorised committee of the Board.
The issue is rated by two Credit Rating Agencies - CRISIL and ICRA. Both agencies have awarded long term debt rating of “AA/Stable” for the debentures offered under the issue. The rating scale denotes “High degree of safety regarding timely servicing of financial obligations and very low credit risk”.
The NCDs are proposed to be listed on the Bombay Stock Exchange Limited (BSE).
“The issue provides an opportunity to retail and high networth individual (HNIs) investors, to whom we have allocated 60 percent of the total issue size, an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments. The funds raised through this issue will be utilised primarily for lending activities of the company,” said Muthoot Finance MD, George Alexander Muthoot.
There are ten investment options for Secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with effective yield per annum, ranging from eight to nine percent.
The lead managers to the issue are Edelweiss Financial Services Limited and A. K. Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee. Link Intime India Private Limited is the Registrar to the Issue.