Muthoot Finance to raise Rs 250 crore via NCD

Muthoot Finance Limited, the largest gold financing company in India, today announced the public issue of 25,00,000 secured redeemable Non-Convertible Debentures (NCDs) of the face value of Rs 1000 each.

Through this issue the company plans to raise an amount of up to Rs. 250 crore, with a green shoe option to retain 100% over-subscription and thus raising the total size of the issue to Rs. 500 crore. The issue, opened on September 7 and will close on October 7, 2015.

The funds raised through this issue will be used for various financing activities including lending and investments, to repay existing loans and for business operations including capital expenditure and working capital requirements.

This is 13th NCD offer from Muthoot Finance with investment tenors ranging from 400 days to 60 months and is offering coupon rate ranging from 8.75 to 9.5%.

Corporates and retail individuals are offered an additional incentive of 0.75% across the tenure. Unsecured NCDs have tenure of 84 months with a coupon rate ranging from 9.66 to 10.41%.

Post allotment, NCDs will be listed on BSE.