Muthoot Finance to raise ₹500 crore via secured redeemable NCDs
1 min read . Updated: 06 Feb 2023, 12:57 PM IST
PremiumThe NCDs have been rated AA+ by ICRA Ratings, and the outlook on long-term rating is stable. There are seven investment options for the NCDs, with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payment with coupon ranging from 7.75% p.a to 8.6% p.a
New Delhi: Muthoot Finance Ltd will raise ₹500 crore via secured redeemable non-convertible debentures (NCDs) of face value of ₹1,000 each. The base issue size is ₹75 crore with an option to retain oversubscription of up to ₹400 crore, aggregating up to tranche limit of ₹500 crore. The issue will open on 8 February and will close on 3 March.
The secured NCDs have been rated AA+ as per ICRA Ratings. The outlook on long-term rating is stable. There are seven investment options for the NCDs, with ‘monthly’ or ‘annual’ interest payment frequency or ‘on maturity redemption’ payment with coupon ranging from 7.75% p.a to 8.6% p.a.
Who all can apply?
Institutional Investors such as public financial institutions, scheduled commercial banks, among others, and non- Institutional Investors such as co-operative banks and regional rural banks can apply for the NCDs. Besides, resident Indian individuals and HUFs can also apply for the issue and earn regular interest payments on the invested amount. They can either subscribe when a company announces NCD or buy later in the secondary market. To buy NCDs online, one needs to have an active demat account and sufficient funds equal to the amount one wants to invest in the NCDs. Individuals must log into their demat accounts and place a buy order to buy NCDs online.
You must note that the company is not permitted to extend loans against the security of its debentures issued by way of private placement or public issues.
The lead manager to the issue is A. K. Capital Services Ltd. IDBI Trusteeship Services is the debenture trustee for the issue, and Link Intime India Private Ltd. is the registrar.
