Muthoot Fincorp Unveils 5th Public Issue Of Secured Redeemable NCDS To Raise Rs 480 Crore
Muthoot Fincorp Limited, a subsidiary of Muthoot Pappachan Group (popularly known as Muthoot Blue) announced the launch of 5th Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs) to raise Rs 250 crore, to retain over the subscription of up to Rs 230 crore, aggregating to Rs 480 crore. The funds raised will mostly be used to expand the working capital and required lending.
For raising NCDs in the aggregate amounts of upto Rs 900 Crore, the company has already received board approval. The first instalment of the issue, which opened on September 20, 2019 and closed by October 18, 2019 raised Rs. 417 Crore from public. The second tranche of the issue would need the face value of Rs 1,000 and the minimum ticket size of Rs 10,000. There will be total 11 schemes, with tenure options of 400 days, 24 months, 38 months and 60 months, ensuring customers returns with interest rates ranging from 9.36 percent to 10 percent. This 5th public issue of NCDs will open on January 9, 2020 and close by February 4, 2020. The issue has received Credit Rating “CRISIL A/Stable” by CRISIL Limited and “BWR A+/Stable” by Brickwork Rating India Pvt. Ltd.
Thomas John Muthoot, Chairman – Muthoot Pappachan Group and Managing Director – Muthoot Fincorp Limited, said, “Muthoot Fincorp has been doing well on the back of a diversified portfolio which is designed to meet needs of the customers. In-spite of the prevailing market conditions, the company has been experiencing a healthy demand for gold and MSME loans. On that account, we have decided to come up with an NCD issue to help meet the company’s increasing working capital needs. The first tranche of the NCD issue was well received by our investors and we managed to raise Rs 417 Cr. that will be used primarily to augment the working capital and requisite lending. Muthoot Fincorp along with the sister companies of the Group, have lacs of customers actively engaged with us. We are confident about the success of the second tranche of the NCD Issue and hope that this will help fuel further growth and will add more value to all our stakeholders, including investors.”