Muthoot Finance to raise up to Rs 300 cr via bonds; issue opens May 25

Muthoot Finance on Tuesday said it will raise up to Rs 300 crore through a public issue of bonds.

Announcing its 27th series of public issue of secured redeemable Non-Convertible Debentures (NCDs) of face value Rs 1,000 each, Muthoot Finance said the issue comprises base issue size of Rs 75 crore with an option to retain oversubscription up to Rs 225 crore.

This will be aggregating up to a tranche limit of Rs 300 crore.

The issue opens on May 25 and closes on June 17 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 non-banking finance company said the funds raised through this issue will be utilised primarily for lending activities of the company.

The bonds will have seven investment options with monthly or annual interest payment frequency or 'on maturity redemption' payment with coupon ranging from 7.25 - 8 per cent per annum.

The NCDs are proposed to be listed on BSE. The allotment will be on first come first serve basis.

George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said, "We have allocated 90 per cent of the issue for retail and high-net-worth individual investors who will be getting 0.50 per cent per annum more than the interest rate applicable for institutions and corporates."

Moreover, interest rates have been increased by 0.25 per cent per annum in this issue compared to the previous issue. In this issue, investors get the twin advantage of better rating as well as attractive interest rate, he said.