The issue opened on 21 September 2023 and it will close on 6 October 2023. The company is offering NCDs worth Rs 100 crore with a green-shoe option to retain oversubscription up to Rs 600 crore, aggregating to a total of Rs 700 crore. The bonds will be issued at a face value of Rs 1,000, with a minimum lot size of 10 NCDs, and will be listed on the Bombay Stock Exchange (BSE).
The NCDs will be available in seven series, with tenors of 24, 36, and 60 months, carrying a fixed coupon rate of 7.75% to 8% per annum. The effective yield (% per annum) ranges from 8.75% to 9%.
The NCDs proposed to be issued have been rated [ICRA] AA+/Stable. Such instruments carry very low credit risk.
Muthoot Finance will utilize at least 75% of the total estimated net proceeds for lending purposes and up to 25% of the total estimated net proceeds for general corporate purposes.
Muthoot Finance, the largest gold loan NBFC in India, provides personal and business loans secured by gold jewelry to individuals who may lack access to formal credit. With approximately 8.34 million loan accounts serviced through 4,742 branches across 22 states in India, it has a substantial presence. Employing over 27,700 individuals, their branches play a crucial role in loan origination, disbursal, collection, and customer interaction. Muthoot Finance raises capital through secured and unsecured debentures, loans from banks and financial institutions, commercial paper, and public and private issuance of non-convertible debentures.