Muthoot Finance on Thursday announced its plans to raise Rs 1,000 crore for lending activities by issuing secured redeemable non-convertible debentures (NCDs).
Muthoot Finance on Thursday announced its plans to raise Rs 1,000 crore for lending activities by issuing secured redeemable non-convertible debentures (NCDs).
The issue is with a base issue size of Rs 100 crore with an option to retain over-subscription of up to Rs 900 crore, aggregating the tranche limit of Rs 1,000 crore, the company said.
George Alexander Muthoot, managing director, Muthoot Finance, said: “In our 24th public issue of NCDs , we wish to focus on retail and high networth individual investors and we have allocated 90% of the issue for this segment. At a time when interest rates have significantly come down, we are able to offer attractive interest rates to retail and high networth individual investors. We look forward for the market to accept the current issue too, in line with our previous NCD issues as there is limited comparable investment avenues available.”
There are six investment options for the NCDs with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payments, with coupon ranging from 6.75% to 7.75% per annum, sources said.
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