Muthoot Fincorp launches Fifth Public Issue of Secured Redeemable Non-ConvertibleDebentures to Raise ₹ 480 Cr.



Muthoot Fincorp Limited, the flagship company of Muthoot Pappachan Group (popularly known as Muthoot Blue) today announced the launch of 5th Public Issue of Secured RedeemableNon-ConvertibleDebentures (NCDs) to raise ₹ 250 crore, with an option to retain over subscription up to₹ 230 crore, aggregating to ₹ 480 crore. The funds raised will primarily be usedto augmentthe working capitaland requisite lending.

The company has received board approval to raise NCDs in the aggregate amounts of upto ₹ 900 Cr. The first tranche of the issue, which opened on September 20, 2019 and closed by October 18, 2019 raised Rs.417 Cr. from public.The second tranche of the issue would have the face value of ₹1,000 and a minimum ticket size of ₹ 10,000.There will be 11 schemes, with tenure options of 400 days, 24 months, 38 months and 60 months, offering customers returns with interest rates ranging from 9.36% to 10%.This 5th public issue of NCDs will open on January 9, 2020 and close by February 4, 2020. The issue has received Credit Rating “CRISIL A/Stable” by CRISIL Limited and “BWR A+/Stable” by Brickwork Rating India Pvt. Ltd.

Commenting on the proposed NCD issue, Mr.Thomas John Muthoot, Chairman -MuthootPappachan Group and Managing Director – MuthootFincorp Limited, said, “Muthoot Fincorp has been doing well on the back of a diversified portfolio which is designed to meet needs of the customers. In-spite of the prevailing market conditions, the company has been experiencing a healthy demand for gold and MSME loans. On that account, we have decided to come up with an NCD issue to help meet the company’s increasing working capital needs.The first tranche of the NCD issue was well received by our investors and we managed to raise Rs 417 Cr. that will be used primarily to augment the working capital and requisite lending. Muthoot Fincorp along with the sister companies of the Group, have lacs of customers actively engaged with us. We are confident about the success of the second tranche of the NCD Issue and hope that this will help fuel further growth and will add more value to all our stakeholders, including investors.”


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