A recent press report said that Muthoot Finance Limited has reserved 60 per cent of its Rs.500 crore non-convertible debenture issue for retail investors. As per the report, Muthoot Finance had been the largest gold loan NBFCs that lends money against jewellery and to attract the retail investors the company offers a higher coupon rate of 12.25 per cent of three to five years and 12 per cent for tenor of two years. Further for institutional investors, it offers a coupon rate of 12 per cent for three to five years and 11.75 per cent for two years.
The report also stated that the company will extend loans for a period of one year with an average ticket size of Rs. 35, 000.However the company is raising money for 2-5 years which is long-term in nature.
Mr. George Alexander Muthoot, Managing Director, Muthoot Finance said that the company is a long term player and will not averse to taking long term debts to the company’s books. Further he also added that the face value of each NCD will be Rs.1000 and the minimum application is for five NCDs and these are to be listed in NSE and BSE.