Muthoot Fincorp looks to raise up to Rs 480 cr via bond issue opening Thursday

New Delhi: Muthoot Fincorp said it will raise up to Rs 480 crore through a public issue of bonds opening on Thursday.

The base issue size for secured redeemable non-convertible debentures is Rs 250 crore with an option to retain subscription up to Rs 230 crore, aggregating to a total of Rs 480 crore, Muthoot Fincrop said in a release on Wednesday.

The funds raised will primarily be used to augment the working capital and requisite lending, it said.

It is the fifth public issue of the company which had raised Rs 417 crore in the previous issue that closed in October 2019.

Muthoot Fincorp said 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 9.36-10 per cent.

The issue closes by February 4, 2020, and has received ‘CRISIL A/Stable’ rating by CRISIL Ltd and ‘BWR A+/Stable’ by Brickwork Rating India.

“Muthoot Fincorp has been doing well on the back of a diversified portfolio which is designed to meet the needs of the customers. In spite of the prevailing market conditions, the company has been experiencing a healthy demand for gold and MSME loans,” said Thomas John Muthoot, Chairman – Muthoot Pappachan Group and Managing Director – Muthoot Fincorp.

On that account, we have decided to come up with an NCD issue to help meet the company’s increasing working capital needs, Muthoot added.