Muthoot Finance to raise ₹700 Cr through NCD issuance

Muthoot Finance to raise ₹700 Cr through NCD issuance

Muthoot Finance Ltd, a stalwart in the financial sector, has just unveiled its 32nd series of public issues for secured redeemable non-convertible debentures (NCDs), each with a face value of ₹1,000. The company is set to bolster its financial prowess by raising ₹700 crores through this issuance, showcasing its resilience and growth potential.

Investment Opportunity with a Safety Net

The NCD issue, which commenced on September 21 and will remain open until October 6 (subject to the discretion of the Board of Directors or the NCD committee), presents a lucrative opportunity for investors. With a base size of ₹100 crores and the flexibility to retain oversubscription up to ₹600 crores, the total tranche limit for this issuance stands at ₹700 crores.

Muthoot Finance assures investors of the safety of their investment by obtaining a stellar rating of [ICRA] AA+ (Stable) from ICRA. This rating signifies a high level of confidence in the company’s ability to meet its financial obligations promptly.

First Come, First Serve Allotment

The NCDs issued under this program are set to be listed on the Bombay Stock Exchange (BSE). Interested investors should note that allotment will be made on a first-come-first-served basis, emphasizing the need for prompt action.

Higher Returns for Retail Investors

George Alexander Muthoot, the Managing Director of Muthoot Finance Ltd, shared insights on the enhanced appeal of this NCD offering. “Our 32nd NCD issue is now open for subscription, with an increased interest rate of 0.50%. Compared to other investment avenues, our NCDs, rated ‘AA+/Stable,’ offer an attractive investment option. This provides our investors with the dual advantage of a higher rating and attractive interest rates ranging from 8.75% to 9% per annum.”

Moreover, as part of this NCD issuance, individual retail investors will enjoy an additional 1% per annum interest rate compared to institutions and corporates.

Diverse Investment Options

Muthoot Finance has catered to a wide range of investor preferences by offering seven distinct investment options for secured NCDs. These options include various interest payment frequencies such as ‘monthly’ or ‘annual,’ as well as ‘on maturity redemption’ payments. Interest rates for individual investors and corporate investors range from 8.75% to 9.00% per annum.

Strong Support from Financial Experts

A K Capital Services Limited leads the management of this NCD issue, while IDBI Trusteeship Services Limited takes up the role of Debenture Trustee. Link Intime India Private Limited has been designated as the Registrar to the Issue, further highlighting the company’s commitment to transparency and investor trust.

Muthoot Finance’s 32nd NCD series is poised to attract investors seeking stability, impressive returns, and diverse investment options. With a strong rating, higher interest rates, and a reputation for financial integrity, this offering solidifies the company’s position as a frontrunner in the financial sector. Don’t miss your chance to be a part of this promising venture; seize this opportunity today!

About Muthoot Finance:

Muthoot Finance Ltd stands as a prominent Indian financial institution, holding the distinction of being the largest non-banking financial company (NBFC) specializing in gold loans within the nation. Beyond its core gold loan services, the company extends its expertise to encompass a diverse range of financial solutions, including various loan products, insurance offerings, money transfer services, and the sale of gold coins.

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