Muthoot FinCorp’s Rs 400 crore NCD issue opens for subscription, offers yield up to 10.10%

Muthoot FinCorp on Tuesday said it has opened subscriptions for its latest tranche of secured, redeemable non-convertible debentures (NCDs) on February 4, targeting to raise up to Rs 400 crore. The offering provides investors with an effective annual yield ranging from 9.38% to 10.10%, with tenure options of 18 to 72 months.

The Tranche IV series of secured and redeemable NCD issue consists of a Rs 100 crore base offering and a Rs 300 crore green shoe option, bringing the total potential fundraising to Rs 400 crore. The company said it plans to use the proceeds for lending, refinancing existing debt, and general corporate purposes. Subscriptions will remain open until February 17, unless closed earlier.

Rated CRISIL AA-/Stable, the offering signifies a high degree of safety regarding timely financial obligations, the company said. Investors can subscribe through Muthoot FinCorp’s 3,700+ branches or via the Muthoot FinCorp ONE app, enabling digital transactions. The NCDs will be listed on the BSE’s debt market segment.

Also read | Time to buy the dip? Stock market indicates oversold level

Shaji Varghese, CEO of Muthoot FinCorp, highlighted the company’s focus on providing secure, high-yield investment options with ease of access. “Investors can seamlessly invest through Muthoot FinCorp’s extensive network of over 3,700+ branches or via our mobile application, Muthoot FinCorp ONE, for investments up to Rs 5 lakhs,” Varghese said.

Retail investors applying through intermediaries for amounts up to Rs 5 lakh must use UPI for fund blocking, per SEBI regulations. Other application modes, including Self-Certified Syndicate Banks (SCSBs), remain available.Part of the 138-year-old Muthoot Pappachan Group, Muthoot FinCorp is a non-banking financial company (NBFC) serving semi-urban and rural customers with various credit products.Also read | Gold, silver, Bitcoin may crash as Trump tariffs loom, warns Rich Dad, Poor Dad author Robert Kiyosaki

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)