- About Us
Product & Services
- Gold Loan
- Small Business Loan
Muthoot FinCorp Ltd, the flagship company of Muthoot Pappachan Group, will tap the public markets on Thursday through a issue of Non Convertible Debentures (NCDs) for raising Rs 250 crore, with an option to retain over subscription up to Rs 230 crore, aggregating to Rs 480 crore, a top official said,
The funds raised will primarily be used to augment the working capital and requisite onward lending, Thomas John Muthoot, Chairman-Muthoot Pappachan Group and Managing Director—Muthoot FinCorp Limited told BusinessLine.
The proposed offering comes on top of the NCD issue in September that saw the company mobilise as much as Rs 420 crore through the NCDs route. Muthoot Pappachan Group is focused on gold loans, MSME loans, microfinance, two wheeler finance and housing finance.
It may be recalled that the company had received Board approval to raise NCDs to the tune of Rs 900 crore this fiscal. “We have already exhausted Rs 420 crore. The remaining (Rs 480 crore) is what we are looking to raise now”, Muthoot said. Beyond the proposed offering, there won’t be any further NCD issuances this fiscal, he added.
Asked about the timing of the latest NCD issue when public sentiments over NBFCs have been affected post the blowouts in IL&FS and DHFL, Muthoot expressed confidence that the proposed NCD issue of the company will comfortably sail through and mobilise Rs 480 crore.“We came with our earlier issue in September, which was the worst time. Many things have improved as of today and most of the NBFCs are today getting money from banks. Finance Ministry is closely monitoring the inflow of monies from banks to NBFCs. Things have improved in last three months with the right kind of Government intervention. Many banks have now increased the limits for us”: he said.
CRISIL has rated the latest NCDs as ‘A stable’ and Brickworks has given a rating of BWR A+, Muthoot said. The NCDs have a tenor from 400 days to 5 years and carry a coupon of 9-10 per cent per annum depending on the tenor.
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: