Muthoottu Mini Plans To Raise Up To Rs 250 Crores Via NCD
- ByStartupStory | August 21, 2021
Muthoottu Mini Financiers Ltd (MMFL), a non-deposit taking NBFC in the gold loan sector, on Friday said it is planning to raise up to Rs 250 crore from non-convertible debentures (NCDs) to fund business growth. The offering has a base issue size of Rs 125 crore, with an option to retain over-subscription up to Rs 125 crore, aggregating up to a total of Rs 250 crore, MMFL said in a statement. ‘The 15th NCD Issue offers various options for the subscription of NCDs with coupon rates ranging from 8.75- 10 percent per annum. The NCD Issue opened on August 18 and closes on September 9, 2021, with an option of early closure or extension,’ it said.
The net proceeds of the issue will be utilised for onward lending, financing, and for repayment/prepayment of principal and interest on borrowings of the company (at least 75 percent) – and the rest (up to 25 percent) for general corporate purposes, it said. As of March 31, 2021, MMFL had 3,86,110 gold loan accounts, predominantly from rural and semi-urban areas, aggregating to Rs 1,935.10 crore, which accounted for 97.04 percent of its total loans and advances. Its net non-performing assets for FY21 stood at 0.75 percent, which is lower than 1.39 percent reported in FY19. In addition to its gold loan business, it offers microfinance loans, depository participant, money transfer, insurance broking, PAN card related and travel agency services.
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