Trivandrum: The Kochi based Muthoot Finance Limited, a leading gold financing company, has opened on September 17, 2012, a public issue of secured, redeemable, non-convertible debentures (‘NCDs’) of face value of Rs. 1,000 each aggregating up to Rs. 250 Crores with an option to retain oversubscription up to Rs. 250 Crores, aggregating to a total of up to Rs. 500 Crores (the ‘Issue’).
The NCD Issue with five investment options and effective yield of upto 12.40% (per annum) closes on October 05, 2012, with an option for early closure as may be decided by the NCD Public Issue Committee subject to necessary approvals. The face value of each NCD is Rs. 1,000 and the minimum application is for ten NCDs (Rs. 10,000) (for all options of NCDs.
The NCDs offered through the Prospectus are proposed to be listed on BSE Limited and National Stock Exchange of India Limited. The NCDs proposed to be issued under this Issue have been rated ‘CRISIL AA-/Stable’ by CRISIL and ‘[ICRA] AA- /Stable’ by ICRA for an amount of up to Rs. 500 Crores.
The funds raised through this Issue will be utilised by the Company for various financing activities including lending and investments, to repay existing liabilities or loans and towards business operations including for capital expenditure, working capital requirement and other general corporate purposes, after meeting the expenditures of and related to the Issue and subject to applicable statutory/regulatory requirements.
The Company provides personal and business loans secured by gold jewellery, or gold loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements. As of June 30, 2012, the
Company has branch network of 3,780 branches. The Company’s Gold Loan portfolio as of March 31, 2012 comprised approximately 6 million loan accounts. As of June 30, 2012, it employed 25,103 persons in its operations.
The Lead Managers to the Issue are ICICI Securities Limited, A.K.Capital Services Limited, Edelweiss Financial Services Limited, Karvy Investor Services Limited, RR Investors Capital Services (P) Limited and SBI Capital Markets Limited.
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