Muthoot Finance is planning to raise Rs 100 crore by issuing secured redeemable non-convertible debentures (NCDs) of face value Rs 1,000 each. The issue opened on 8 February 2023 and will close on 3 March 2023.

The issue comprises base issue size of Rs 100 crore with an option to retain over subscription of up to Rs 400 crore. The minimum bid quantity is Rs 10,000 (10 NCDs) across all series and in multiples of Rs 1,000 thereafter. The NCDs offered through this Tranche V prospectus are proposed to be listed on BSE. The allotment will be on a first come first serve basis.

At least 75% of the funds raised through this issue will be used for the purpose of lending and the balance is proposed to be utilized for general corporate purposes.

The NCDs proposed to be issued under this Issue have been rated [ICRA] AA+/Stable (pronounced as ICRA Double A plus rating with stable outlook) by ICRA. The aforesaid rating of the NCDs by ICRA indicates high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

The issue comes with seven investment options with 'monthly' or 'annual' interest payment frequency or 'on maturity redemption' payments with effective yield ranging from 8.25% to 8.60% per annum.

Muthoot Finance is the largest gold loan NBFC in India in terms of loan portfolio. It provides personal loans and business loans secured by gold jewelry, or gold loans, primarily to individuals who possess gold jewelry but are not able to 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.

The company's gold loan portfolio as of 30 September 2022 comprised approximately 8.16 million loan accounts in India that we serviced through 4,641 branches across 22 states, the national capital territory of Delhi and six union territories in India.