Muthoot Finance, the largest gold financing company in terms of loan portfolio, has received an approval to raise at least Rs 300 crore via a public bond issue. The issue has an option to retain an additional Rs 300 crore. The company will use the proceeds for its lending activities. The lead managers to the issue are ICICI Securities, HDFC Bank, A.K. Capital and Karvy Investor Services.
The gold financing company is borrowing funds via two-, three-, five-year bonds and five-and-a-half year zero coupon bonds. The firm is borrowing via two-, three-, five-year bonds and five-and-a-half year zero coupon bonds. The issue which will open on December 22 will close on January 7 and is rated 'CRISIL AA-/Stable' by CRISIL and 'AA- (stable)' by ICRA.
Muthoot Finance is the flagship company of South India based business house ‘The Muthoot Group’. The group is diversified into financing, healthcare, real estate, education, hospitality, forex, wealth management services, money transfer services, power generation and entertainment.
The company’s net profit for the second quarter ended September 30, 2011 of the current fiscal grown by 88.29% at Rs 215.55 crore as compared to Rs 114.48 crore for the similar quarter of the previous fiscal. The company’s total revenue has zoomed by 108.65% at Rs 1104.87 crore for the quarter under review whereas the same stood at Rs 529.54 crore for the similar quarter of the previous year.
| Company Name | CMP |
|---|---|
| Bajaj Finance | 918.55 |
| Shriram Finance | 1045.05 |
| Aditya Birla Capital | 341.30 |
| Chola Invest & Fin. | 1568.80 |
| Tata Capital | 335.25 |
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