Muthoot FinCorp launches NCD tranche II issue; aims to raise up to ₹600 crore

Muthoot FinCorp has launched the second tranche of its secured and redeemable non-convertible debentures (NCDs), with the public subscription window opening on March 13 and scheduled to close on March 23.The company said it aims to raise up to ₹600 crore under this tranche within an overall approved shelf limit of ₹3,000 crore.

Each NCD carries a face value of ₹1,000.
The issue comprises a base size of ₹200 crore with a green shoe option of ₹400 crore, taking the total potential size to ₹600 crore.According to the company, the proceeds will be used for onward lending and financing activities, repayment or prepayment of principal and interest on existing borrowings, and for general corporate purposes.

The NCDs offer effective annual yields ranging from 8.70% to 9.10% across tenure options of 24, 36, 60 and 72 months.The instruments have been rated AA-/Positive by CRISIL Ratings Limited and AA/Stable by Brickwork Ratings India Private Limited. The company said the ratings indicate a high degree of safety regarding the timely servicing of financial obligations.

The NCDs are proposed to be listed on the debt market segment of the BSE.

For individual investors applying through intermediaries, applications up to ₹5 lakh are required to use the UPI mechanism for blocking funds along with a valid UPI ID. Applications can also be submitted through self-certified syndicate banks (SCSBs) and through the stock exchange platform.

Muthoot FinCorp is the flagship company of the Muthoot Pappachan Group and operates as a non-banking financial company providing a range of lending and financial services through its nationwide branch network.

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