Leading gold loan player, Muthoot Finance has announced its 27th series of Public Issue of Secured Redeemable Non-Convertible Debentures of face value Rs. 1,000 each (“Secured `NCDs”).
The gold loan provider said the Issue is of base issue size of Rs 75 crore with an option to retain oversubscription up to Rs 225 crores aggregating up to tranche limit of Rs 300 crores. The Issue opens on 25th, May 2022 and closes on 17th June, 2022 with an option to close on such earlier date or extended date as may be decided by the Board of Directors or NCD committee.
The NCDs are proposed to be listed on BSE. The allotment will be on first come first serve basis, Muthoot Finance said in a release.
George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said “We have allocated 90% of the issue for retail and high networth individual investors who will be getting 0.50% p.a more than the interest rate applicable for institutions and corporates. Moreover, interest rates have been increased by 0.25% p.a. in this issue compared to the previous issue. In this issue, investors get the twin advantage of better rating as well as attractive interest rate. We also have 7 year NCD for those investors who want to lock in the interest rates for long period as well as reduce the uncertainty of fluctuations in interest rate in future.”
The funds raised through this issue will be utilised primarily for lending activities of the Company, Muthoot Finance said.
The Lead Manager to the Issue is A. K. Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the Issue. Link Intime India Private Limited is the Registrar to the Issue.