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Muthoot Fincorp, the flagship company of the Muthoot Pappachan Group, plans raise up to Rs 200 crore through public issue of secured, redeemable non-convertible debentures (NCDs).
This will be the company's first NCD issue and it plans touse the money to build up its loan portfolio.
"The maiden NCD issue would have a face value of Rs 1,000 each aggregating up to Rs 100 crore, with the option to retain over-subscription up to Rs 100 crore thus aggregating to a total issue size of up to Rs 200 crore," Muthoot Fincorpsaid in a statement.
The NCDs will offer interest rate of 10.75-12.00% depending on the monthly, annual and cumulative options, chosen by investors.TheNCD issue opens on July 3, 2014 and will close on August 4, 2014. The minimum investment amount per application for all options of NCDs is Rs 10,000. The NCDs will be issued in both physical and demat formats.
The NCDs have been rated 'CRISIL A' by rating agency firm CRISIL. The lead managerto the issue is SMC Capitals. Muthoot Fincorp closed last financial year with a net worth of Rs 1,249.85 crore. The company's capital adequacy ratio was 21.01%.
