Muthoot Finance has announced its 19th series of public issue of secured redeemable non-convertible debentures. The issue has a base issue size of ₹100 crore with an option to retain oversubscription up to ₹650 crore aggregating to the tranche limit of ₹750 crore (Tranche I issue).
The issue opens on Thursday and closes on March 14 with an option to close on such earlier or later.
It is rated by both CRISIL and ICRA. The rating 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 the BSE.
There are nine investment options for the secured NCDs with monthly and annual interest payment frequencies or on maturity redemption payments with effective yield a year in the range of 9.25-10 per cent.
The funds raised through this issue will be utilised primarily for lending activities of the company. Edelweiss Financial and AK Capital Services are the lead managers. IDBI Trusteeship Services is the Debenture Trustee for the issue. Link Intime India is the registrar.
“The issue provides an opportunity to retail and high networth individual investors, to whom we have allocated 60 per cent of the total issue size, an opportunity to have stable and attractive long-term returns when there are only limited comparable avenues for investments,” George Alexander Muthoot, MD, said.