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Muthoot Fincorp announces its 2nd public issue of Secured, Redeemable Non-Convertible Debentures (NCDs)

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Pune (Sept 17, 2014): Muthoot Fincorp Limited, the flagship company of the Muthoot Pappachan Group announced the opening of its second public issue of Secured, Redeemable Non-Convertible Debentures (NCD) of face value of INR 1,000/- each, aggregating up to INR 150 crores, with the option to retain oversubscription up to INR 150 crores, thus aggregating to a total issue size of up to INR 300 crores.

The NCDs offer investors an opportunity to lock in at an attractive interest rate of between 10.25% to 12.25% p.a. depending on the monthly, annual and maturity options, chosen by the investors. The NCD offers eleven investment options to investors with an effective yield of up to 12.25%.

The face value of each NCD is INR 1,000/- and the minimum investment amount per application for all options of NCDs is INR 10,000/-. The NCDs are issued in both Physical and Demat formats, with no TDS applicable for NCD investments in Demat format. The funds raised through this Issue will be utilised by the Company for building up of loan portfolio.

Speaking on the occasion, Mr. Thomas John Muthoot, Chairman and Managing Director, Muthoot Fincorp said, “We received encouraging response to our first NCD, which was oversubscribed much in advance of the original closure date. We are launching our second NCD with an aim to offer a very attractive investment proposition for our retail investor base. The NCD, with its attractive returns of up to 12.25%, offers value to investors looking for safety and attractive returns as well.”

Muthoot Fincorp is amongst the largest Gold Loan companies in India and has an average of 50,000 walk in customers per day. Registered with the Reserve Bank of India, the company has a diverse mix of retail offerings catering to the various needs of its customers including Loan products, Money Transfer, Foreign Exchange, Insurance Services and Wealth Management Services. Decades of dedicated research and experience in rural strongholds have enabled the Company to provide quick and customized finance options and investment schemes for millions of customers who do not have access to mainstream banking services.

The NCDs will be made available to the investors through the 3,831 Muthoot Fincorp Ltd branches across the country and at BSE. The NCDs proposed to be issued under this Issue have been rated ‘CRISIL A/ Stable’ by CRISIL. The Lead Manager to the Issue is SMC Capitals Ltd.

Investment options for secured NCDs:  


TENURE

SCHEME

INTEREST RATE

MODE

24 MONTHS

Monthly

11.00%

Physical/ Demat

Annual

11.50%

Physical/ Demat

Maturity

11.50%

Only in Demat form

36 MONTHS

Monthly

11.50%

Physical/ Demat

Annual

11.75%

Physical/ Demat

Maturity

11.75%

Only in Demat form

60 MONTHS

Annual

11.50%

Physical/ Demat

400 DAYS

Monthly

10.25%

Physical/ Demat

Maturity

10.50%

Only in Demat form

72 MONTHS

Monthly

12.00%

Physical/ Demat

DOUBLING SCHEME
72 MONTHS

Maturity

12.25%

Only in Demat form