Muthoot Finance issue provides opportunity to Retail, HNI investors: MD George Alexander Muthoot
Muthoot Finance issue is with a base issue size of Rs 100 crore with an option to retain oversubscription up to Rs 650 crore aggregating up to tranche limit of Rs 750 crore.
Muthoot Finance Ltd has announced its 19th series of Public Issue of Secured Redeemable Non-Convertible Debentures (NCD). The issue is with a base issue size of Rs 100 crore with an option to retain oversubscription up to Rs 650 crore aggregating up to tranche limit of Rs 750 crore. The issue opens on February 14, 2019 and closes on March 14, 2019 with an option to close on such earlier date or extended date as may be decided by the Board of directors or NCD committee. The NCDs are proposed to be listed on BSE Limited.
Speaking on the issue , George Alexander Muthoot, Managing Director said “The issue provides an opportunity to Retail and High Networth Individual investors, to whom we have allocated 60% of the total issue size, an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments.”
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The Lead Managers to the issue are Edelweiss Financial Services Limited and AK Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the issue. Link Intime India Private Limited is the Registrar to the Issue.
The issue is rated by two Credit Rating Agencies – CRISIL Ltd and ICRA Ltd. Both agencies have awarded long term debt rating of ‘AA/Stable’ for the debentures offered under the issue. The rating scale denotes ‘High degree of safety regarding timely servicing of financial obligations and very low credit risk’.
There are nine investment options for Secured NCDs with Monthly or Annual interest payment frequency or on maturity redemption payments with effective yield p.a. ranging from 9.25% to 10%. The funds raised through this issue will be utilised primarily for lending activities of the Company.