Muthoot FinCorp Limited (“MFL” or “Company”), the flagship company of 137-year-old Muthoot Pappachan Group (Muthoot Blue), has announced NCD Tranche III series of secured and redeemable non-convertible debentures (NCDs) with a face value of Rs. 1000 each, scheduled to open on December 23, 2024. The purpose of this offering is to facilitate onward lending, financing, and the repayment of both interest and principal on the Company’s existing indebtedness, along with general corporate purposes.
Muthoot FinCorp aims to raise an amount aggregating to Rs. 300 crore which is within the shelf limit of Rs. 2000 crore. The NCD Tranche III series issuance amounts to Rs. 100 crore (“Base Issue Size”) with a green shoe option of Rs. 200 crore aggregating up to.
The NCDs under the NCD Tranche III Issue are being offered with maturity/tenure options of 24, 36, 60, 72 and 92 months, with monthly, annual and cumulative payment options across different Options – I, II, III, IV, V, VI, VII, VIII, IX, X, XI, XII and XIII from which the customers can conveniently choose. Effective yield (per annum) for the NCD holders in all categories of investors ranges from 9.00% to 10.10%.
The NCD Tranche III will be open to the public from December 23, 2024 to January 6, 2025, subject to early closure upon approval from the Board of Directors or the Stock Allotment Committee of the Company, and in accordance with applicable regulations under Regulation 33A of the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021, as amended (SEBI NCS Regulations).
All individual investors applying through intermediaries (viz. syndicate members, registered stockbrokers, registrar to an issue and transfer agent and depository participants), where the application amount is upto ₹ 5 lakh, shall only use UPI for the purpose of blocking of funds and provide his/ her bank account linked UPI ID in the bid-cum-application form submitted with intermediaries.
However, individual investors shall continue to have the choice of availing other modes (viz. through SCSBs and Stock Exchange Platform) for making an application in the public issue. With the Muthoot FinCorp ONE app customers can invest in NCDs easily anytime, anywhere at the comfort of their homes as well as through the wide network of our 3600+ branches.
Alternatively, customers can use the UPI based investing mechanism that is present in our NCD Module. These NCDs have been rated CRISIL AA-/Stable (pronounced as "CRISIL double A minus with a Stable outlook") by CRISIL Ratings Limited, indicating a high degree of safety for timely servicing of financial obligations. It is proposed that these non-convertible debentures will be listed on the debt market segment of the BSE.
“We are happy to launch the NCD Tranche III of NCDs. With multiple tenure options, interest payout options and coupon rate upto 10.10%, one can invest in these secured NCDs through UPI Mechanism where the application amount is upto Rs. 5 lakh as per SEBI NCS Regulations through Muthoot FinCorp ONE app or through Muthoot FinCorp’s 3600+ branches across the country", said Shaji Varghese, CEO of Muthoot FinCorp Limited.