CHENNAI: Muthoot Finance limited plans to raise upto Rs 2,000 crore through public offering of
Secured Redeemable Non-Convertible Debentures (NCDs). Proceeds will be utilised primarily for lending activities, the company said on Monday.
The proposed debenture issue will have a base issue size of Rs 100 crore with an option to retain over subscription up to Rs 1,900 crores aggregating upto tranche limit of Rs 2,000 crore. The Issue opens on October 27, 2020 and closes on November 20, 2020 with an option to close on such earlier date or extended date as may be decided by the Board of Directors or NCD committee.
“In the present scenario of lower interest rates and expectations of interest rates falling further, our issue offers safe long term investment options with high stable returns to investors. The issue will augment the company’s long term funding requirements thereby supporting the stable growth that our company envisages,” said George Alexander Muthoot, Managing Director of Muthoot Finance Ltd.
“We expect the current issue, too, be well received by the market in line with our previous NCD issues as there is a limited comparable investment avenue available,” he added. The NCDs are proposed to be listed on BSE and the allotment will be on first come first serve basis.