Muthoot Capital Services Ltd coming out with rights issue of shares

COCHIN: Muthoot Capital Services Ltd is coming out with a rights issue of shares on a 1:1 basis to the existing shareholders. The shares of Rs 10 each face value would be issued at a premium of Rs 70 per share, making the issue price of Rs 80 per share.

The company has 65,00,000 shares of Rs 10 each at present The company plans to raise Rs 52 crores through the issue. The issue will open on July 11, 2011 and close on the July 25, 2011.

Muthoot Capital Services Limited, a non banking financial company, is listed on the Bombay Stock Exchange. MCSL has a strong presence in the banking and finance sector in rural and semi-urban areas in Southern India.

The company offers auto loans, small and medium enterprise loans, gold loans, lease financing, etc. MCSL also offers capital market services like financial advisory services, wealth management and insurance products.

A Muthoot Pappachan Group company, MCSL would leverages on the extensive branch network of the 'Muthoot Pappachan Group' to deliver financial services and products in Kerala, Tamil Nadu, Karnataka, Maharashtra and Andhra Pradesh. The Company has plans for giving loan against Gold ETF, equipment finance and financing of tractors.