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Muthoot Finance Ltd Rs 3000 cr NCD Issue oversubscribed; closes on Day 2

Published in Banking & Finance Saturday, 14 April 2018 16:09

Muthoot Finance Ltd’s Rs 3,000 crore NCD (Non-convertible Redeemable Debentures) issue opened on April 09, 2018 and closed on the second day i.e. April 10, 2018.

This was the 18th series of Public Issue of NCD by the company. Company has filed a Shelf Prospectus for issue of Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of face value of ₹ 1,000 each aggregating upto ₹ 3000 crores (“Shelf Limit”). The Tranche issue is with a base issue size of ₹ 500 crores with an option to retain oversubscription upto shelf limit of ₹ 3000 crores (“Tranche I issue”).

The issue oversubscribed with subscription of Rs 3,672 crore as per data available on the electronic platform of BSE Ltd as of April 10, 2018.
NCD issue by the India’s largest gold loan company garnered overwhelming response from HNI & retail investors, as per data available on BSE Ltd.
Mr. George Alexander Muthoot said, “We are very ecstatic to close our NCD issue in 2 days. We are thankful to our customers and investors for the unwavering support and continued trust in us. The NCDs facilitates the company to have long term funds and diversify the borrowings as well.”

He further added, “We had allocated 60 percent of the issue for retail and HNI investor category who are always scouting for an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments.”

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 secured NCDs are proposed to be listed on BSE Limited. In the current issue, there are 10 investment options for Secured NCDs with Monthly or Annual interest payment frequency or on maturity redemption payments with effective yield p.a. ranging from 8.00% to 9.00%.

The funds raised through this issue will be utilised primarily for lending activities of the Company.

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.

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