New Delhi, April 13, 2017: Muthoot Finance Ltd’s Rs 2000 crore NCD (Non-convertible Redeemable Debentures) issue that opened on April 11, 2017, closed on Day 2 (April 12, 2017). NCD issue by the India’s largest gold loan company garnered overwhelming response from HNI & retail investors, as per data available on BSE.
This was the 17th series of Public Issue of NCD by the company. The issue comprised Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of face value of ₹1,000 each aggregating upto ₹1950 crores and Unsecured Redeemable Non-Convertible Debentures (“Unsecured NCDs”) of face value of ₹ 1,000 each aggregating upto ₹ 50 crores, totaling upto ₹2000 crores (“Shelf Limit”). The Tranche issue was with a base issue size of ₹ 200 crores with an option to retain oversubscription upto shelf limit of ₹2000 crores (“Tranche I issue”).
Mr. George Alexander Muthoot said, “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. It is our second issue in the 2017 that gathered terrific response from the retail and HNI investors.”
He further added, “The NCDs also facilitates the company to raise funds at lower cost and diversify the borrowings as well.”
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 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 investment option for Unsecured NCDs is a scheme which doubles the invested amount in 96months with an effective yield p.a. of 9.06%.
The funds raised through this issue will be utilised primarily for lending activities of the Company.
The Lead Managers to the issue were 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.
Earlier in January 2017, Muthoot Finance had completed Rs 1400 crore NCD Public issue on Day 2.
Corporate Comm India (CCI Newswire)
