Muthoot FinCorp launches Public Issue of Secured & Unsecured Redeemable Non-Convertible Debentures(NCDs) to Raise ₹ 300.00 Cr.
- This is the 9thPublic Issue of NCDs undertaken by the Issuer, post eight successful Issues earlier
- This NCD Issue offers to the investor attractive returns at an effective yield as high as 9.40% (tenure for 72 months Annual/ cumulative(Unsecured)
Kochi, February 20, 2021: Muthoot FinCorp Limited (the Company), the flagship company of Muthoot Pappachan Group (popularly known as Muthoot Blue) launched its 9th Public Issue of Secured & Unsecured Redeemable Non-Convertible Debentures (NCDs) to raise ₹ 150.00 crores, with an option to retain oversubscription up to ₹ 150.00 crores, aggregating to ₹ 300.00 crores. The funds raised will primarily be used for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the Company.
Based on the response received from the public investors, the Company has opened the new issue which commenced on February 18, 2021, and will close on March 09, 2021, with an option to close early or extend as per SEBI regulations.
For investors, there are 9 options: with tenure of 27 months, 38 months, and 60 months for the Secured NCDs, and with a tenure of 72 months for the Unsecured NCDs, offering returns with interest rates ranging from 8.25% to 9.40%. The minimum amount for subscription is Rs. 10,000/- for NCDs having a face value of Rs. 1000 each. The ongoing Public issuance of NCDs has a rate of “CRISIL A/Stable” by CRISIL Limited.
Commenting on the proposed NCD issue, Mr. Thomas John Muthoot, Chairman – Muthoot Pappachan Group and Managing Director – Muthoot FinCorp Limited, said, “t The Indian economy has started witnessing positive trends of late and the recent Union Budget announcements from Hon’ble Finance Minister, Smt. Nirmala Sitharaman attempts to put a lot of thrust on building the economy, creating employment and growth by introducing initiatives such as the Production linked Incentive Scheme, the National Infrastructure Pipeline (NIP) launching new projects, and many other new initiatives under the AtmaNirbhar Bharat program. He stated Muthoot FinCorp has different product offerings to suit and meet the varied needs of its customers. We understand our customers’ needs and bridge the gap with suitable products. The company has been experiencing a steady rise in demand for gold and MSME loans from its esteemed customers. Hence, to help augment the company’s increasing working capital needs, we have decided to come up with the present NCD issue. The earlier three NCD issues were well received by our investors and we raised Rs 909.78 Cr (NCD 6-Rs.160.00Crore, NCD 7-Rs.397.13 Crore, and NCD 8-352.65 Crore ) during the financial year 2020-21, till today. Muthoot FinCorp along with the sister companies of the Group has a lot of customers actively engaged with us. We are confident about the success of this NCD Issue and hope that this will help fuel further growth and will add more value to all our stakeholders, including investors. “
About Muthoot Pappachan Group:
Muthoot Pappachan Group (MPG) also known as Muthoot Blue, the much-diversified business conglomerate has been providing solutions, services, and expertise to millions of customers across the country in various domains like multiple NBFCs with multiple products within Retail Financial Services, wide-spectrum Sports initiatives, powerful CSR initiatives, Automotive, Realty, Hospitality, IT and Alternate energy. Over the years, Muthoot Pappachan Group has grown to become a significant entity in the Indian business landscape. Muthoot Pappachan Group, in fact, is one of the largest employers in the country, across industries, and endeavoring to give them a family-like work environment. The Group’s customer-centric approach and innovation in terms of new products that cater to changing customer needs have helped in gaining the loyalty of innumerable customers, as well as attracting new ones. The Group adopts the latest technology and new ways of catering to the needs of customers, coupled with an uncompromising stand on values, principles, and ethics.
About Muthoot FinCorp Ltd.:
Muthoot FinCorp Ltd, the flagship Company of Muthoot Pappachan Group, Muthoot Blue, is one of the largest NBFCs in India with around 3600 branches pan India. Muthoot FinCorp is a provider of retail finance, predominantly in the form of secured and unsecured loans to middle and low-income customers. Decades of customer-centricity, dedicated research, and experience with the customers and their families have enabled the Company to provide quick and customised financing options & investment schemes for millions of customers. Currently, it has a large customer base. Muthoot FinCorp Ltd has emerged as a prominent gold loan player in India. At the same time, the Muthoot FinCorp branches offer and/or service the products of Muthoot Blue Group company, for the fulfillment of all lifecycle & life-stage needs of the common man and so, act as a one-stop-shop for the financial needs of the common man. Apart from the gold loans, the diverse mix of retail offerings includes Small Business Loan products, Affordable Housing Loan, Two-wheeler Loan, Used car loan, Domestic & International Money Transfer, Chits, Foreign exchange, Insurance products & services, Wealth Management services, Affordable Gold Jewellery and so on.