Muthoot Finance on Monday announced that it is looking to raise up to Rs 2,000 crore through non-convertible debentures (NCDs) for lending purposes.
The company said that the base size of the issue is Rs 100 crore with an option to retain oversubscription up to Rs 1,900 crore, aggregating up to Rs 2,000 crore.
“The issue will augment the company’s long term funding requirements, thereby supporting the stable growth that our company envisages,” Muthoot Finance’s managing director George Alexander Muthoot said in the release adding that the funds raised through this issue will be utilised primarily for lending activities.
The issue will open on October 27 and closes on November 20 with an option to close on such earlier date or extended date as may be decided by the Board of Directors or NCD committee.
There are six investment options for secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with coupon ranging from 7.15 per cent to 8 per cent per annum.
The bonds are proposed to be listed on BSE. The allotment will be on a first come first serve basis.
The Secured NCDs proposed to be issued under this Issue have been rated CRISIL AA/Positive by CRISIL and (ICRA) AA (Stable) by ICRA.
The lead managers to the issue are Edelweiss Financial Services, J M Financial, Equirus Capital Private and A K Capital Services. IDBI Trusteeship Services is the debenture trustee for the issue.
In the quarter ended June 30, 2020, the company’s profit after tax stood at Rs 841 crore. Its net-worth was Rs 12,316 crore and had a capital adequacy ratio of 26.30 per cent as on June 30, 2020.