Muthoot Fincorp raises Rs 200 crore from NCD issue
Jul 18 2014 , Mumbai
The issue which opened for subscription on July 3 was fully subscribed two weeks in advance of the original closing date of August 4, the company said in a release issued here today.
"We are delighted with the response to our first ever public issue of NCD. The funds raised will be utilised for building up of loan portfolio," Muthoot Fincorp Chairman and Managing Director Thomas John Muthoot said.
The original size of the issue was Rs 100 crore with an option to retain oversubscription of Rs 100 crore.
The company offered four bonds maturing in 400 days, two years, three years and five years with an interest rate ranging between 10.75 per cent to 12 per cent per annum, depending on the monthly, annual and cumulative options, chosen by investors.
The issue offered ten investment options and effective yields of up to 12 per cent per annum.
The face value of each NCD was Rs 1,000 and the minimum investment amount per application for all options of NCDs was Rs 10,000 crore.
The lead manager to the issue was SMC Capital.