Muthoot Fincorp
launches Fifth Public Issue of Secured Redeemable Non-Convertible Debentures to
Raise ₹ 480 Cr.
Muthoot Fincorp
Limited, the flagship company of Muthoot Pappachan Group (popularly known as
Muthoot Blue) today announced the launch of 5th Public Issue of Secured
RedeemableNon-ConvertibleDebentures (NCDs) to raise ₹ 250 crore, with an option
to retain over subscription up to₹ 230 crore, aggregating to ₹ 480 crore. The
funds raised will primarily be usedto augmentthe working capitaland requisite
lending.
The company has
received board approval to raise NCDs in the aggregate amounts of upto ₹ 900 Cr.
The first tranche of the issue, which opened on September 20, 2019 and closed
by October 18, 2019 raised Rs.417 Cr. from public.The second tranche of the
issue would have the face value of ₹1,000 and a minimum ticket size of ₹ 10,000.There
will be 11 schemes, with tenure options of 400 days, 24 months, 38 months and
60 months, offering customers returns with interest rates ranging from 9.36% to
10%.This 5th public issue of NCDs will open on January 9, 2020 and
close by February 4, 2020. The issue has received Credit Rating “CRISIL A/Stable”
by CRISIL Limited and “BWR A+/Stable” by Brickwork Rating India Pvt. Ltd.
Commenting on the
proposed NCD issue, Mr.Thomas John Muthoot, Chairman -Muthoot Pappachan
Group and Managing Director - Muthoot Fincorp Limited, said, “Muthoot
Fincorp has been doing well on the back of a diversified portfolio which is designed
to meet needs of the customers. In-spite of the prevailing market conditions,
the company has been experiencing a healthy demand for gold and MSME loans. On
that account, we have decided to come up with an NCD issue to help meet the
company’s increasing working capital needs.The first tranche of the NCD issue
was well received by our investors and we managed to raise Rs 417 Cr. that will
be used primarily to augment the working capital and requisite lending. Muthoot
Fincorp along with the sister companies of the Group, have lacs of customers
actively engaged with us. We are confident about the success of the second
tranche of the NCD Issue and hope that this will help fuel further growth and
will add more value to all our stakeholders, including investors.”
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