Muthoot Capital Services Ltd has approved the issuance of nonconvertible debentures (NCDs) worth up to Rs 1.5 billion, reinforcing its strategy to diversify funding sources and support business expansion.
Key Highlights
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The Debenture Issue and Allotment Committee sanctioned the issuance of 15,000 rated, listed, senior, secured, redeemable, and taxable NCDs.
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Each debenture carries a face value of Rs 100,000, with a tenure of 24 months and a bullet repayment structure.
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The coupon rate is set at 9.5% per annum, with monthly interest payouts, offering attractive returns to investors.
Strategic Implications
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The funds will be deployed for refinancing existing liabilities, enhancing working capital, and supporting loan disbursements.
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The move aligns with Muthoot Capital’s broader goal of maintaining liquidity while optimizing cost of capital.
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The NCDs will be listed on the BSE, ensuring transparency and tradability for institutional investors.
Sources: CNBCTV18, MarketScreener, Economic Times.