newznew (Chandigarh) : Muthoot Finance Ltd, the largest gold financing company in India, has announced its 17th series of Public Issue of Non-convertible Redeemable Debentures. Company has filed a Shelf Prospectus for issue of Secured Redeemable Non-Convertible Debentures (“Secured NCDs”) of face value of ₹ 1,000 each aggregating upto ₹ 1950 crores and Unsecured Redeemable Non-Convertible Debentures (“Unsecured NCDs”) of face value of ₹ 1,000 each aggregating upto ₹ 50 crores, totalling upto ₹ 2000 crores (“Shelf Limit”). The Tranche issue is with a base issue size of ₹ 200 crores with an option to retain oversubscription upto shelf limit of ₹ 2000 crores (“Tranche I issue”).
The issue opens on April 11, 2017 and closes on May 10, 2017 with an option to close earlier and/or extend upto a period as may be determined by a duly authorised committee of the Board.
The issue is rated by two Credit Rating Agencies – CRISIL and ICRA. Both agencies have awarded long term debt rating of “AA/Stable” for the debentures offered under the issue. The rating scale denotes “High degree of safety regarding timely servicing of financial obligations and very low credit risk”.
On the occasion, Mr. George Alexander, MD, Muthoot Finance said, “The issue provides an opportunity to retail and high networth individual (HNIs) investors, to whom we have allocated 60% of the total issue size, an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments.”
The NCDs are proposed to be listed on BSE Limited.
There are ten investment options for Secured NCDs with Monthly or Annual interest payment frequency or on maturity redemption payments with effective yield p.a. ranging from 8.00% to 9.00%.
The investment option for Unsecured NCDs is a scheme which doubles the invested amount in 96months with an effective yield p.a. of 9.06%.
The funds raised through this issue will be utilised primarily for lending activities of the Company.
The Lead Managers to the issue are Edelweiss Financial Services Limited and A. K. Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee. Link Intime India Private Limited is the Registrar to the Issue.