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KOCHI: Making its entry into debt capital market Muthoot FinCorp Limited, the flagship company of Muthoot Pappachan Group, today announced the launch of its maiden public issue of Secured, Redeemable Non-Convertible Debentures (NCD)s of Rs 100 crore.
With a face value of Rs 1,000 each aggregating up to Rs 100 crore, the NCD will have the option to retain over subscription up to Rs 100 crore, thus aggregating to a total issue size of up to Rs 200 crore, a press release here said.
The networth of Muthoot FinCorp as on Mar 31 this year is Rs 1,249.85 crore with a Capital Adequacy Ratio of 21.01 per cent. The NCDs offer investors an opportunity to lock in at an attractive interest rate of between 10.75 per cent to 12.00 per cent per annum, depending on the monthly, annual and cumulative options, chosen by the investors.
The NCD Issue which offers 10 investment options and effective yield of up to 12.00 per cent(per annum) closes on August 4.
The minimum investment amount per application for all options of NCDs is Rs 10,000. The NCDs are issued in both Physical and Demat formats (except for cumulative interest option), with TDS not applicable on Demat formats.
The funds raised through this Issue will be utilised by the Company for building up of loan portfolio.
Speaking on the occasion, Thomas John Muthoot, Chairman and Managing Director, Muthoot FinCorp said, “Given the government focus on the economy, which would now be growth oriented, we expect interest rates to come down over a period of next few quarters”.
Given this scenario, the NCD, with its returns of up to 12 per cent, was an attractive investment proposition for our retail investor base.
The NCDs will be made available to the investors through the 3,831 Muthoot FinCorp Ltd NSE -4.71 % branches across the country and at BSE. The NCDs proposed to be issued under this Issue have been rated ‘CRISIL A’ by CRISIL NSE -0.74 %.
It has been brought to our notice that certain individuals are receiving fraudulent emails, phone calls, and messages, etc, about job vacancies with Muthoot FinCorp and they are also being asked to deposit money in certain bank accounts.
Please be informed that such communications and practices are completely mala fide and sent with an intent to defraud the public and bring disrepute to the goodwill of our Company. Our Company does not ever demand any fee/money against recruitment nor for the application/interview process.
The public at large is hereby cautioned not to be misled by any such communications received through emails, message or any other communication mode.
Please contact us for further information about the genuineness or otherwise of such communications at: