India's largest gold loan NBFCs company Muthoot Finance is issuing NCD (Non -Convertible Debentures).
Muthoot Finance Ltd has reserved 60 percent of it's Rs.500 crore maiden NCD issue for retail investors.
The company has a greenshoe option of an additional Rs.500 crore. Greenshoe options gives the underwriter the right to sell investors more shares than originally planned by the issuer.
So company is planning to raise Rs.1, 000 crore through the issue of NCDs.
To attract retail investors, the company offers a higher coupon rate of 12.25 percent for tenors of three and five years and a 12 percent for tenor of two years.
For institutional investors, it offers a coupon rate of 12 percent for three and five years and 11.75 percent for two years.
Actually the company is raising money for 2-5 years and typically it is long-term in nature.
"We are long-term players and we are not averse to taking long-term debt in our book", said Mr.George Alexander Muthoot, Managing Director, Muthoot Finance.
The face value of each NCD is Rs.1, 000 and the minimum application is for five NCDs (Rs.5, 000). The NCDs are proposed to be listed on the NSE and BSE.
Credit rating agency Crisil assigns 'A' rating to Muthoot Finance NCD programme.
Regards Hari "लोका समस्ता सुखिनो भवन्तु"
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