Muthoot Finance Ltd to raise Rs. 300 Crores through Public Issue of Secured Redeemable Non-Convertible Debentures

• This issue of Secured Redeemable Non-Convertible Debentures is open from April 12, 2023 and will close on April 26, 2023

National, April 14, 2023: Muthoot Finance Ltd has announced its 31st Public Issue of Secured Redeemable Non-Convertible Debentures (Secured NCDs) of the face value of ₹ 1,000 each. The base size of the issue is ₹ 75 crores with an option to retain oversubscription up to ₹ 225 crores, aggregating up to a tranche limit of  ₹ 300 crores (“Issue”).  The Issue opened on April 12, 2023 and closes on April 26, 2023 with an option to close on an earlier date or to an extended date, as may be decided by the Board of Directors or the NCD committee.

The Secured NCDs proposed to be issued under this Issue have been rated AA+ (Stable) by ICRA. This rating of the Secured NCDs indicates a ‘high degree of safety regarding timely servicing of financial obligations’. The NCDs are proposed to be listed on BSE and the allotment will be on a first come first serve basis.

There are 7 investment options for Secured NCDs with ‘Monthly’ or ‘Annual’ interest payment frequency or ‘on maturity redemption’ payments with interest rates ranging from 8.25% p.a to 8.60% p.a. for Individual Investors.

Speaking on their 31st NCD issue, Mr. George Alexander Muthoot, Managing Director, Muthoot Finance Ltd, said, “Our 31st NCD issue is open for subscription and the interest rate offered on our NCDs are in line with the prevailing  interest rates, especially subsequent to the RBI pause on repo rate hike in the April 2023 monetary policy. As such, in comparison to similar available other investment avenues, our NCDs are rated ‘AA+/Stable’ and are an attractive investment option. We have allocated 90% of the issue for retail and high networth individual investors who will be getting 0.50% p.a more than the interest rate applicable for institutions and corporates. We expect a good response from the market for our issue.”

The funds raised through this issue will be utilised primarily for lending activities of the Company.

The Lead Manager to the Issue is A. K. Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the Issue. Link Intime India Private Limited is the Registrar to the Issue.

About Muthoot Finance Limited

Muthoot Finance Ltd, a “Upper Layer NBFC” (NBFC-UL), is the largest gold loan NBFC in India. Its operating history has evolved over a period of 83 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887. The equity shares of the Company have been listed on National Stock Exchange of India Limited and BSE Limited since 2011. It has a branch network of 4500 plus branches across 23 states, the national capital territory of Delhi and five union territories in India. It serves about 2,00,000 plus retail customers every day for Gold Loans and Other Products and has about 2,00,000 plus Retail Investor Base for its Non-Convertible Debentures. It employs over 25000 persons in its operations. Its standalone loan assets stood at Rs.57,731 crores as at December 31, 2022 and it generated a consolidated Profit after Tax of Rs.902 crores for Q3 FY 2023.