Muthoot files papers with Sebi to raise Rs 500 crore via NCDs

Muthoot Finance, which is mainly into gold financing business, has filed draft documents with market regulator Sebi to raise up to Rs 500 crore through issue of non-convertible debentures (NCDs).

Muthoot is aiming to garner up to Rs 250 crore through NCDs, and would have the option to retain an over-subscription of up to Rs 250 crore for issue of additional NCDs aggregating to a total of up to Rs 500 crore, as per the company's draft prospectus filed with Sebi.

The public issue by Muthoot of 'secured redeemable NCDs'and 'unsecured redeemable NCDs' are of face value of Rs 1,000 each.

The company will utilise the proceeds raised through the issue for various financing activities including lending and investments as well as to repay existing loans.

Besides, the company will use the funds "towards its business operations including for our capital expenditure and working capital requirements".

ICICI Securities is the lead manager and Link Intime India the registrar to the company's issue.

The NCDs offered are proposed to be listed on the BSE, the prospectus said.

Muthoot Finance is one of the largest provider of gold loans in India. The entity employs 25,000 people in over 4,400 branches across the country.