17-Oct-2017
Mumbai: Muthoot FinCorp Ltd on Wednesday announced plans to raise ₹ 100 crore by selling non-convertible debentures (NCDs), offering interest rates between 10.75% and 12% under monthly, annual and cumulative pay out options.
The company said it may choose to retain oversubscription of up to Rs100 crore. The issue will open on 4 July and close on 4 August.
The secured, redeemable debentures will have a face value of Rs1,000 each.
This is the first time the Kerala-based non-banking financial company (NBFC), known for providing gold loans, is entering the NCD market.
The NCDs proposed to be issued under this offer have been rated ‘CRISIL A’ by the rating agency CRISIL, which means that they carry low credit risk.
“Given the government focus on the economy, which would now be growth-oriented, we expect interest rates to come down over a period of next few quarters. Given this scenario, our NCD, with its attractive returns of up to 12%, offers a very attractive investment proposition for our retail investor base,” said Thomas John Muthoot, chairman and managing director of Muthoot FinCorp.
On 30 June, Shriram Transport Finance Co. Ltd, a regular issuer of debentures in public domain, opened its latest NCD issue for Rs500 crore, with interest rates ranging from 10.7% to 11.5%.
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