Muthoot Finance to raise Rs 500 crore through Public Issue of NCD

Muthoot Finance Ltd, the largest gold financing company in India, has opened a public issue of Non-Convertible Debentures - Secured & Unsecured (NCDs).

Through this NCD issue the company plans to raise an amount up to Rs. 250 crore, with a right to retain oversubscription of Rs. 250 Crs,  thus with a total issue size of Rs. 500 crores. The issue opened on December 11, 2015 and will close on January 11, 2016, with an option for early closure.

The NCDs under this issue have been rated ‘AA-/Stable’ by CRISIL indicating high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.

The funds raised through this issue will be used primarily for lending activities.

This is 14^th NCD Public Issue from Muthoot Finance with investment tenors ranging from 400 days to 87 months and is offering coupon rates ranging from 9.00% to 10.00% for individuals and corporates with monthly and annual coupon payment options or only maturity benefit options.

Post allotment, the NCDs will be listed on BSE. 

ICICI Securities Ltd and A.K Capital Services Ltd are the Lead Managers to the Issue. IDBI Trusteeship Services Limited is the Debenture Trustee to the Issue, Link Intime India Pvt Ltd is the registrar to the Issue.

About Muthoot Finance Limited:

Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio. The company is a “Systemically Important Non-deposit taking NBFC” headquartered in the southern Indian state of Kerala.

Operating history of Muthoot Finance has evolved over a period of 76 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887.

The company provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.

Company is listed on both National Stock Exchange and Bombay Stock Exchange.