Gold loan company Muthoot FinCorp Ltd on Monday (September 4) said it has unveiled its 16th series of secured, redeemable, non-convertible debentures (NCDs), aiming to raise a substantial Rs 400 crore.

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This offering falls within the company's shelf limit of Rs 1,100 crore, signaling its intent to tap into the investment market effectively.

The inaugural tranche of Rs 100 crore, which includes a green shoe option of Rs 300 crore, forms the "Tranche I Issue." This offering, consisting of NCDs with a face value of Rs 1,000, was open to the public from September 1, 2023, and will remain accessible until September 14, 2023.

However, the issuance may close early at the discretion of the company's Board of Directors or a duly constituted committee, subject to relevant approvals and in compliance with Regulation 33A of the SEBI NCS Regulations.

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Investors can choose from multiple maturity/tenure options, including 24, 36, 60, and 96 months. Furthermore, the NCDs offer a range of payment options, such as monthly, annual, and cumulative, across schemes I to X, providing flexibility to investors.

The effective yield (per annum) for NCD holders spans from an enticing 8.65-9.43 percent.

CRISIL, a leading credit rating agency, has accorded the secured NCDs issued under Tranche I with an AA-/ Stable rating. These NCDs are set to be listed on the debt market segment of the Bombay Stock Exchange (BSE).

The capital raised from this offering will be channelled towards onward lending, financing activities, and servicing existing borrowings, including interest and principal repayments. It will also support the company's general corporate initiatives.

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Shaji Varghese, CEO of Muthoot FinCorp, expressed confidence in the offering, stating, "Our strength lies in the trust and belief our customers have placed in us for over 136 years. I'm delighted to announce the 16th series of NCDs from Muthoot FinCorp."