Muthoot Finance Ltd. on Thursday said it is looking to raise up to Rs 1,000 crore by issuing non-convertible debentures.
The Muthoot Finance bond issue has a base size of Rs 100 crore with an option to retain oversubscription of up to Rs 900 crore.
There are ten investment options for secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with effective yield per annum ranging from 9.25 percent to 10 percent, the company said in a release.
The funds raised through the bond issue will be used to fund lending activities of the company, the release stated.
The Muthoot Finance bond issue opens on Sept. 27 and closes on Oct. 25. The NCDs are proposed to be listed on the Bombay Stock Exchange.
On Thursday, Muthoot Finance shares rose 1.88 percent to Rs 682.10 apiece on the BSE while the benchmark Sensex gained 1.03 percent to end the day at 38,989.74 points.
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