Invest in Muthoot finance NCDs: Muthoot Finance recently announced that it will raise almost Rs 300 crore through a public offering of secured redeemable non-convertible debt (NCDs). The financial corporation and largest gold loan NBFC has announced the launch of its 27th series of Secured Redeemable Non-Convertible Debentures with a face value of Rs 1000 apiece (Secured NCDs).
According to the NBFC, the base issue size includes the option to keep almost Rs 225 crore in oversubscription, up to a tranche maximum of Rs 300 crores. According to a press statement by Muthoot Finance, the issue is set to close on June 17th, 2022.
Meanwhile, Muthoot Finance has chosen to keep the option of closing the offer earlier or extending it, as determined by its Board of Directors or NCD committee, according to the statement. On May 25, 2022, the issue was first published. Check out the following important details:
Follow us on Google News For all Latest News and Finance Updates
What are noncommunicable diseases (NCDs)?
Non-convertible debentures are financial instruments that are used by businesses to raise long-term capital. It is accomplished through a public problem. Because they cannot be converted into equity or stocks, they are referred to as non-convertible debt instruments (NCDs). Fixed income investors have found them to be useful because they have the potential to provide a larger return. They are less risky and offer investors tax advantages.
Should you put your money into Muthoot Finance NCDs?
The fundamental question is whether you should invest in Muthoot Finance NCDs, which pay 8% interest. It is critical to research the company’s history before investing in NCDs. It’s critical to learn if the company has successfully raised funds and settled debts in the past. Second, the interest rate supplied by the corporation remains the most appealing feature of NCDs.
Beyond that, you must ensure that the company’s high interest rate is backed by a decent credit rating. Muthoot Finance has obtained an AA+ rating from ICRA, which is steady in both respects. It denotes a high level of security. Second, Muthoot has already used non-convertible debentures to raise funds on multiple occasions.
As a result, investing in Muthoot’s NCDs is a good idea because the interest rate is higher than most other investment options. [ Invest In Muthoot Finance NCDs ]
Muthoot Finance NCD Details and Interest
The issue will take place between May 25th and June 17th. The issue’s basic size is Rs 75 crore, with an option to keep oversubscription up to Rs 225 crore, bringing the total amount raised to Rs 300 crore. Each NCD has a face value of 1000 rupees. “Interest payment option” and “on maturity payment option” are available to investors. See the table below, for more information:
Muthoot Finance is a company that specializes in financial services. The NBFC already has a significant foothold in the gold lending market. According to the company’s regulatory filing, Muthoot’s overall income for the fourth quarter of fiscal year 2022 fell to Rs 3041.14 crore from Rs 3,118.98 crore a year ago. Due to a drop in core interest income, the company’s consolidated net profit for the fourth quarter ended in March fell to Rs 1006.23 crore. Muthoot’s interest income fell by 3.7 percent to Rs 2916.87 crore in Q42022 FY. [ Invest In Muthoot Finance NCDs ]
- Start a Life Insurance in College: 5 Benefits
- 3 Best Insurance Plans To SAVE TAX In India
- Top 10 Life Insurance Policy in India
- 9 Best Small-Cap Stocks To Buy In 2022: S&P 500
- हर दिन कितना पानी पीना चाहिए: Daily Water Intake
The information and material contained in these blog are subject to change without prior notice. Investments in debentures, equity shares etc, are not obligations of or guaranteed by TeknikalRaman.com, and are subject to investment risks.
The information contained in this website, graphics, links, including text or other items are provided on an ‘as is’, ‘as available’ basis. TeknikalRaman.com does not warrant the adequacy, accuracy, or completeness of this information and material and expressly disclaims liability for errors or omissions in this information and material. In no event will TeknikalRaman.com be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages.
TAGS- How to Invest In Muthoot Finance NCDs, Should I Invest In Muthoot Finance NCDs, What do you mean by Invest In Muthoot Finance NCDs, Best to Invest In Muthoot Finance NCDs, Invest In Muthoot Finance NCDs growth rate