Muthoot Finance, which provides loans against gold, has sought market regulator Sebi's approval to raise up to Rs 500 crore through issuance of non-convertible debentures.
The company is planning to raise an initial amount of Rs 250 crore, with a green shoe option to retain 100 per cent over-subscription and thus raise the total size of the issue to Rs 500 crore.
The funds raised through the issue will be used for lending activities and other corporate purposes, as per the draft prospectus filed with Securities and Exchange Board of India (Sebi).
As of December 2015, the company's gold loan portfolio comprised about 6.90 million loan accounts in the country.
Muthoot Finance, which has 4,259 branches in India, employs more than 23,000 persons.
The company has filed draft prospectus for a "public issue of secured NCDs and unsecured NCDs aggregating up to Rs 250 crore with an option to retain over-subscription up to Rs 250 crore for issuance of additional secured NCDs and unsecured NCDs aggregating to a total of up to Rs 500 crore".
NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
Overall, Indian firms garnered close to Rs 23,000 crore through NCDs in the current fiscal (2015-16) as on February 10. In comparison, Rs 9,713 crore was garnered by firms in the entire last fiscal.
