Muthoot Finance opens the 32nd series of public issue of non-convertible debentures
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Muthoot Finance announced its 32nd series of public issues of secured redeemable non-convertible debentures last Thursday, September 21.
The company decided to offer each non-convertible debenture at a face value of ₹1,000. The base size of the issue is at ₹100 crore, but it also offers an option to retain oversubscription up to ₹600 crore. However, according to the firm, it still has a tranche limit of ₹700 crore.
Elevated interest rates
The plan is to keep the issue open for about two weeks, meaning that it will close on October 6. The company also has the option to shut it down before this date or extend the offering if its Board of Directors or the NCD committee deem it necessary.
“The Secured NCDs proposed to be issued under this Issue have been rated [ICRA] AA+ (Stable) by ICRA. This rating indicates a high degree of safety regarding timely servicing of financial obligations,” the firm said.
The company’s Managing Director, George Alexander Muthoot, said: “Our 32nd NCD issue is open for subscription, and the interest rate offered on NCDs has been increased by 0.50%. Compared to other available investment avenues, our NCDs, rated ‘AA+/Stable’, offer an attractive investment option. This provides our investors a dual advantage of a higher rating and attractive interest rate ranging from 8.75% to 9% p.a,”
An overwhelming success
Two days after the move, the Muthoot Group published a post on X, noting that there has been an overwhelming response to the offering. The opening day alone has seen massive interest, and the series oversubscribed with rs.770.35 Crores.
We extend our heartfelt gratitude as the 32nd NCD series received an overwhelming response, oversubscribed with Rs.770.35 Crores on its opening day. Your trust and investment in us are invaluable, and we are committed to enhancing your financial journey. Your support drives our… pic.twitter.com/LsmGbLlsJb
— The Muthoot Group (@TheMuthootGroup) September 25, 2023
The NCDs are proposed to be listed on BSE; meanwhile, the allotment is on a first-come-first-serve basis.
The company also noted that its retail investors will get 1% p.a. More than the interest rate that is applied to institutions and corporates. In total, there are seven investment options featuring monthly and annual interest payments. The interest rate goes from 8.75% p.a. to 9.00% p.a. For individual investors and corporate investors.
After it raises the funds, the firm would like to use them primarily for lending.
