Muthoot Finance NCD issue to offer up to 10%

Mumbai: Gold financing company Muthoot Finance on Thursday said it will launch a non-convertible debenture (NCD) issue to raise up to Rs 790 crore on Friday.

The issue has a base size of Rs 100 crore with an option to retain oversubscription of up to Rs 690 crore. The NCD will close on December 24.

The issue is rated by two AA/Stable by credit rating agencies Crisil and Icra, and the NCDs are proposed to be listed on BSE.


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 per cent to 10 per cent.

The funds raised through this issue will be utilised primarily for lending activities of the company.
George Alexander Muthoot, managing director, Muthoot Finance said, adding that 80 per cent of the total issue size will be allocated to retail and high networth individual investors.

The lead managers to the issue are Edelweiss Financial Services Ltd and A K Capital Services.