Muthoot Finance, leading gold loan company, is expected to raise up to Rs 500 crore through a public issue of secured redeemable non-convertible debentures of face value of Rs 1,000 each aggregating up to Rs 250 crore with an option to retain over subscription up to Rs 250 crore. The public offer opens for subscription on March 2, 2012. The NCD Issue with four investment options and effective yield of up to 13.43% (per annum) closes on March 17, 2012, with an option for early closure as may be decided by the duly authorized committee of board of directors of the Company.
The company would be looking at mobilizing funds primarily from retail investors, while the NCDs are to be listed at the Bombay Stock Exchange (BSE). Further, the NCDs proposed to be issued under this Issue have been rated 'CRISIL AA-/Stable' by CRISIL and '[ICRA] AA- /Stable' by ICRA.
The company posted a jump of 61.27% in its net profit of Rs 250.88 crore for the quarter ended December 31, 2011 as compared to Rs 155.57 crore for the same quarter in the previous year. Total income has increased by 90.58% from Rs 645.79 crore for Q3FY11 to Rs 1230.76 crore in the quarter under review.
Muthoot Finance is a non-deposit taking systemically important non-banking finance company (NBFC). It is primarily in the business of lending against used household gold jewellery to individuals. The company provides personal and business loans secured by gold jewellery, or gold loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, to meet short-term liquidity requirements.
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| Chola Invest & Fin. | 1676.05 |
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