Muthoot Fincorp Rolls Out 5th Tranche Of Rs 900-crore Capital Market Plan

“SMC Capitals, the investment arm of SMC group, has been assigned the managers of the NCD issue,” Thomas John Muthoot, chairman, Muthoot Pappachan Group, told FE.

Muthoot Pappachan Group’s (better known as Blue Muthoot) NBFC arm Muthoot Fincorp has rolled out the fifth tranche of its Rs 900-crore public issue plan for the current fiscal. This time, the company has floated a public issue of secured redeemable NCDs (non-convertible debentures) to the tune of Rs 480 crore. This 5th public issue of NCDs will open on January 9 and close by February 4. It has been listed on BSE. “SMC Capitals, the investment arm of SMC group, has been assigned the managers of the NCD issue,” Thomas John Muthoot, chairman, Muthoot Pappachan Group, told FE.
“The public issue will augment the working capital and the diversify the borrowing basket. For Muthoot Fincorp, the issue is specifically intended to harness its 40 lakh-odd retail customers, through 3,551 retail branches, across the country,” he said. The NCD public issue, opening on Thursday, targets to raise Rs 250 crore, with an option to retain over-subscription of up to Rs 230 crore, aggregating to Rs 480 crore.

“In fact, Muthoot Fincorp’s Board of Directors had approved a plan to raise NCDS up to Rs 900 crore in the current fiscal. The first tranche of the issue, which opened on September 20, 2019, and closed by October 18, had picked up Rs 417 crore from public,” Thomas John Muthoot said.

According to Blue Muthoot officials, the NCD issue opening this week, has received Credit Rating “Crisil A/Stable” by Crisil and “BWR A+/Stable” by Brickwork Rating India. For Rs 4,613-crore Muthoot Fincorp, gold loan business is the chief breadwinner. “Our capital augmentation would first cater to the growth of the gold loan business. At the same time, credit to MSMEs is also a key portfolio, which the next year’s plans will responsibly support,” said the chairman.

Muthoot Pappachan Group, which employs over 26,000 people, across its 4,600 branches, is a diversified business conglomerate that operates in domains as varied as financial services, automotive, realty, hospitality, IT and alternate energy. Besides gold loans and MSME loan products, its flagship company Muthoot Fincorp has a slew of financial products including housing loan, auto loan, domestic money transfer, international remittance, foreign exchange, varied insurance products and wealth management services.