Industry

Muthoot Finance to raise ₹790 cr.

more-in

Firm to use funds for lending activities

Muthoot Finance Ltd. will raise ₹790 crore through the issue of secured, redeemable, non-convertible debentures (NCDs) to be used primarily for the lending activities of the company.

The issue opens on November 29 and closes on December 24 with an option to close it earlier or at an extended date as may be decided by the board or the NCD committee.

The issue is rated by Crisil Ltd. and Icra Ltd., both of whom have awarded long-term debt rating of AA/stable for the debentures. The rating scale denotes a ‘high degree of safety regarding timely servicing of financial obligations and low credit risk’. The NCDs are proposed to be listed on BSE. The allotment is based on first come, first serve basis.There are 10 investment options for secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with effective yield per annum ranging from 9.25% to 10%.

“The issue will help the company to have long-term funds and the diversify borrowing basket as well,” said George Alexander Muthoot, MD, Muthoot Finance.

“It provides an opportunity to retail and high networth individual investors with stable and attractive long-term returns,” he added.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Dec 13, 2019 6:59:14 PM | https://www.thehindu.com/business/Industry/muthoot-finance-to-raise-790-cr/article30109709.ece

Next Story