6-Jan-2022
Muthoot Fincorp Limited launched its 12th public issue of Secured Redeemable Non-Convertible Debentures (NCDs) on January 5 to raise ₹200 crore, with an option to retain over-subscription up to ₹200 crore, aggregating to ₹400 crore. The funds raised will primarily be used for onward lending, financing, and repayment/prepayment of interest and principal of existing borrowings of the company. The NCDs will be of ₹1,000 face value each, with minimum ticket size of ₹10,000. There will be 10 tenure options of secured NCDs i.e. 27 months, 38 months, 72 months, and 96 months, offering returns with effective yield ranging from 8.30 to 9.37 per cent. The issue closes on January 28 with an option to close early or extend as per SEBI regulations and has received “CRISIL A+/Stable” rating by Crisil Limited. The company has mobilised funds worth ₹665.11 crore by NCD public issues during April 2021-December 2021; ₹500 crore by Market Linked NCDs( MLD) and ₹75 crore by private placements. Thomas John Muthoot, Managing Director, Muthoot Fincorp Limited, said the company has been experiencing a rising demand for gold and MSME loans. Hence, to help meet the company’s increasing working capital needs, it has decided to come up with an NCD issue.
