Muthoot Homefin (India) Limited, a non- deposit taking housing finance company and currently the wholly owned subsidiary of Muthoot Finance Limited is proposing a public issue of upto Rs. 3000 million by issuing Secured Redeemable Non- Convertible Debentures (NCDs) of the face value of Rs. 1,000 each.
The issue is with a base issue size of ? 1500 million with an option to retain oversubscription up to Rs 1500 million aggregating upto tranche limit of Rs 3000 million. The Issue will open for subscription on April 08, 2019 and is scheduled to close on May 7, 2019, with an option of early closure, and/or extension, as may be decided by the Board of Directors of our Company or duly constituted Finance Committee of the company.
Options of investment tenors are 2, 3.2, 5 and 7.5 years, with monthly, annual and cumulative payment options. There are ten investment options for Secured Redeemable NCDs with Monthly or Annual interest payment frequency or on maturity redemption payments with effective yield p.a. ranging from 9.25% to 10.00%.
The proposed NCDs under this Issue have been rated ‘CRISIL AA/Stable’ by CRISIL. These ratings indicate high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.
Quoting on the issue , Eapen Alexander Muthoot , Executive Director said, “The company has completed three years of operations and clocked loan portfolio of Rs 18,351 million in September 2018. This is our first debt issue and funds raised through the same will be utilised primarily for lending activities of the Company.
The issue provides an opportunity to Retail and High Networth Individual investors, to whom we have allocated 60% of the total issue size, an opportunity to have stable and attractive long term returns when there are only limited comparable alternative avenues for investments.” The NCDs are proposed to be listed on BSE Limitd.
Edelweiss Financial Services Limited is the Lead Managers to the Issue. Milestone Trusteeship Services Private Limited is the Debenture Trustee to the Issue, while Link Intime India Private Limited is the Registrar to the Issue.