Muthoot Mercantile Launches ₹100 Crore NCD Issue for Gold Loan Expansion

Muthoot Mercantile Limited, a prominent Indian gold loan provider, has launched a ₹100 crore non-convertible debenture (NCD) issue to raise funds for expanding its gold loan lending activities and branch network across India, offering attractive interest rates to investors." This description focuses on the primary topic of the NCD issue, the main entity of Muthoot Mercantile Limited, and the context of the Indian financial sector. It also highlights the significant action of the NCD issue and its implications for the company's expansion plans. The description provides objective and relevant details that will guide the AI in creating an accurate visual representation of the article's content, such as a image of a gold loan provider's office or a graph showing the growth of the company's branch network.

author-image
Aqsa Younas Rana
New Update
Muthoot Mercantile Launches ₹100 Crore NCD Issue for Gold Loan Expansion

Muthoot Mercantile Launches ₹100 Crore NCD Issue for Gold Loan Expansion

Muthoot Mercantile Limited, a prominent Indian gold loan provider, has announced the launch of a ₹100 crore non-convertible debenture (NCD) issue. The company aims to raise funds through this issue to bolster its gold loan lending activities and expand its branch network across the country.

Why this matters: This development has significant implications for India's financial sector, as it highlights the growing demand for secured credit among consumers. The expansion of gold loan services can also have a positive impact on the country's rural economy, where access to credit is often limited.

The NCD issue, which commenced on May 6 and is scheduled to conclude on May 17, offers attractive interest rates ranging from 10.50% to 13.65% for senior citizens and 10.50% to 13.15% for the general public. Each NCD has a face value of ₹1,000, with a minimum investment requirement of ₹10,000.

Richi Mathew, Managing Director of Muthoot Mercantile, emphasized the company's commitment to investor safety, stating, "Our paramount concern is the safety of our investors, which is complemented with an appealing rate of return. We anticipate robust demand for the issue from discerning investors."

Muthoot Mercantile, headquartered in Thiruvananthapuram, currently operates in 10 states and 1 union territory. The company plans to utilize the funds raised from the NCD issue to further expand its presence and cater to the growing demand for gold loans across the nation.

The NCD issue has been rated "IND BBB/Stable" by India Ratings & Research Private Limited, indicating a stable outlook for the investment. Investors should note that the public issue of NCD may close early if it is fully subscribed before the issue closing date. Allotment will be done on a first-come, first-serve basis.

A company spokesman described the NCD issue as an "exciting investment opportunity" for those seeking to diversify their portfolios and earn attractive returns. With its strong presence in the gold loan sector and plans for expansion, Muthoot Mercantile aims to capitalize on the growing demand for secured credit among Indian consumers.

Key Takeaways

  • Muthoot Mercantile launches ₹100 crore NCD issue to raise funds for gold loan lending.
  • The issue offers interest rates of 10.50%-13.65% with a minimum investment of ₹10,000.
  • Funds will be used to expand branch network and cater to growing demand for gold loans.
  • The NCD issue has been rated "IND BBB/Stable" by India Ratings & Research Private Limited.
  • The issue may close early if fully subscribed, with allotment on a first-come, first-serve basis.