Muthoot Finance to raise Rs 500 crore via NCDs

Muthoot Finance on Friday said it seeks to raise Rs 500 crore from a public issue of non-convertible debentures (NCDs) which is now open for subscription.

Through the issue of NCDs (secured and unsecured), the Kerala-based gold financing company plans to raise up to Rs 250 crore, with a right to retain over-subscription of Rs 250 crore, giving the offering a total size of Rs 500 crore.

The issue opened on December 11 and will close on January 11, 2016, with an option for early closure, a company statement said here.

The NCDs have been rated 'AA-/Stable' by Crisil, indicating high degree of safety regarding timely servicing of financial obligations and carry very low credit risk, it said.

The funds mobilised through this issue will be used primarily for lending activities, it added.

This is 14th NCD public issue from Muthoot Finance with investment tenors ranging from 400 days to 87 months.

The latest issue is offering coupon rates ranging from 9% to 10% for individuals and corporates with monthly and annual coupon payment options or only maturity benefit options, it said.

Post allotment, the NCDs will be listed on BSE.

ICICI Securities and AK Capital Services are the lead managers to the issue. IDBI Trusteeship Services is the debenture trustee, while Link Intime India is the registrar to the offering, the statement added.