Muthoot Finance, the largest gold financing company in terms of loan portfolio, to meet its working capital requirements is mulling over to raise Rs 6,000 crore in the current fiscal. The promoters of Muthoot Finance will also dilute five percent of their share-holding in the next three years.
In the current fiscal, the total fund requirement by the company will be Rs 6000 crore. Out of this, the company will be raising Rs 1000 crore through the retail non-convertible debentures (NCD) while the remaining funds will be raised through various options, including bank loans like cash credit. The company's Rs 1000-crore public issue of the secured redeemable NCDs is opening today.
The largest gold loan NBFC's average lending rate is 21.6 percent with a net interest margin of 9.5 to 10 percent, while its non-performing assets ratio is 0.3 percent and average loan size of Rs 35,000. According to market regulator, Securities and Exchange Board of India (SEBI), promoters of a listed company need to offload 25 percent equity stake in the open market. At present, the promoters of Muthoot Finance hold 80 percent stake in the company.
| Company Name | CMP |
|---|---|
| Bajaj Finance | 972.55 |
| Shriram Finance | 1015.40 |
| Aditya Birla Capital | 368.90 |
| Chola Invest & Fin. | 1689.15 |
| Tata Capital | 325.90 |
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