Muthoot Capital To Issue NCDs Worth Rs 90 Crore

Muthoot Capital Services Ltd. on Thursday informed in an exchange filing that it will be issuing non-convertible debentures worth Rs 90 crore.

The NCDs, which will be allotted on a private placement basis, are proposed to be listed on BSE Ltd., according to the filing.

The issues will be allotted for a 24-month period. As the company plans to allot the NCDs on Dec. 12, 2024, they will mature on Dec. 12, 2026.

The debentures will have yearly coupon rate of 9.50%, which will be payable monthly.

The non-banking financial company's filing stated that its debenture issue and allotment committee had on Thursday approved the issue of up to "9,000 senior, secured, rated, listed, taxable principal protected redeemable non-convertible debentures", each having a face value of Rs 1 lakh.

Earlier, in November, Muthoot Capital had initiated the process to issue NCDs aggregating to Rs 110 crore. However, the company later withdrew the issue.

On the reason for withdrawal, the company had stated that "the issue couldn’t be closed as the bidding was not completed on time. Hence, the company had to withdraw the issue and issue set up was re-initiated on 27.11.2024."

For the earlier offer, the company had proposed a coupon rate of 10.40% per annum. And, at that time, Muthoot Capital had proposed to issue "11,000 rated, listed, unsubordinated, secured, transferable, redeemable, non-convertible debentures", with a face value of Rs 1 lakh for each NCD.

The issue, with a 24-month timeline, was proposed to be allotted on Nov. 28, 2024, and was set to mature on Nov. 28, 2026.

Shares of Muthoot Capital Services Ltd. closed 1.21% lower at Rs 366.50 apiece on the BSE, compared to a 1% advance in the benchmark Sensex.