Feed: The Economic Times
Posted on: Monday, August 22, 2011 6:08 PM
Author: The Economic Times
Subject: Muthoot Finance to raise Rs 6,000 cr in FY12
Gold financing company Muthoot Finance is mulling over to raise Rs 6000 crore in the current fiscal to meet its working capital requirements, a top executive said on Monday.
The promoters of Muthoot Finance will also dilute five per cent of their share-holding in the next three years.
"The total fund requirement in this fiscal will be Rs 6000 crore. As we are raising Rs 1000 crore through the currently listed retail non-convertible debentures (NCD), the remaining funds will be raised through various options, including bank loans like cash credit," George Alexander Muthoot, Managing Director, Muthoot Group told reporters.
The company's Rs 1000-crore public issue of the secured redeemable NCDs is opening tomorrow.
The largest gold loan NBFC's average lending rate is 21.6 per cent with a net interest margin of 9.5 to 10 percent, while its non-performing assets ratio is 0.3 per cent and average loan size of Rs 35,000, Muthoot said.
"We will offload another five per cent of the equity stake of the company in the next three years. If situation requires we may come out earlier than that," he added.
According to market regulator, Securities and Exchange Board of India (SEBI), promoters of a listed company need to offload 25 per cent equity stake in the open market.
At present, the promoters of Method Finance hold 80 per cent stake in the company.
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