Gold loan major and an upper layer NBFC Muthoot Finance has announced its latest public issue of secured redeemable non-convertible debentures of face value of Rs 1,000 each. The issue has a base size of 100 crore with an option to retain over-subscription up to600 crore, aggregating to a tranche limit of Rs 700 crore.
The issue opened on September 21, 2023 and closes on October 06, 2023, with an option to close on earlier date or extended date, as may be decided by the board of directors or the NCD committee.
The secured NCDs proposed to be issued under this issue have been rated AA plus (stable) by ICRA. This rating indicates high degree of safety regarding timely servicing of financial obligations, said a company statement.
The NCDs are proposed to be listed on BSE. The allotment will be on first come first serve basis. There are 7 investment options for secured NCDs with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payments with interest rate ranging from 8.75% per annum to 9.00% per annum for individual and corporate investors.
George Alexander Muthoot, MD, Muthoot Finance, said; “ Our 32nd NCD issue is open for subscription, and the interest rate offered on NCDs has been increased by 0.50%. Compared to other available investment avenues, our NCDs, rated AA plus/stable’, offer an attractive investment option. This provides our investors a dual advantage of a higher rating and attractive interest rate ranging 8.75% to 9% per annum.”
The funds raised through this issue will be utilised primarily for lending activities of the company. The lead manager to the issue is AK Capital Services and IDBI Trusteeship Services is the debenture trustee for the issue. Link Intime India is the registrar to the issue.
He said :“As part of this issue, our retail individual investors will receive 1% p.a. more than the interest rate applicable to institutions and corporates. We are hoping for an increased interest from the market and our investors for this issue.”
Muthoot Finance reported a 27% increase in its consolidated profit after tax (PAT) to Rs 1,045 crore for the first quarter of FY24 as against Rs 825 crore in the same quarter last year on the back of higher growth in loan assets. Total consolidated income of the company stood at Rs 3,508 crore as compared to Rs 2, 804 crore, registering a growth of 25%. Its gold loan AUM grew at a robust pace of 18%, y-o-y and 7% q-o-q and stood at Rs 66,039 crore in Q1 FY24.