Muthoot Finance to raise Rs 790 cr through NCDs

Non-banking financial company Muthoot Finance on Thursday said it plans to raise up to Rs 790 crore through non-convertible debentures for on-lending. The base size of the issue is Rs 100 crore, with an option to retain oversubscription of up to Rs 690 crore, the company said.

"The issue will help the company to have long-term funds and diversify borrowing basket as well," managing director George Alexander Muthoot said in a statement. He said the funds raised through this issue will be utilized primarily for lending activities.

There are ten investment options with monthly or annual interest payment frequency or on maturity redemption payments with effective yield per annum ranging from 9.25 percent to 10 percent. The issue will open for subscription on November 29, 2019, and close on December 24, 2019. The NCDs will be listed on BSE.

The lead managers to the issue are Edelweiss Financial Services and A K Capital Services.