Why Muthoot Finance extended its NCD issue

Saikat Das
Moneycontrol.com

Gold loan company Muthoot Finance has recently extended the closing date of its secured redeemable non-convertible debenture (NCD) issue from the earlier March 17 deadline to now April 09.
The issue offers 13%, 13.25%, and 13.43% rate of interest for tenures ranging from two-year to five-and-a-half year. However, this is neither tax-saving nor tax-free (wherein interest income is tax free) investment option. The issue opened on March 2.
The NCD issue on Tuesday just managed to garner Rs 250 crore, which is the core issue size, along with an oversubscription option of another Rs 250 crore. By extending the issue closing date, the company is hoping to mop up Rs 500 crore, according to banking sources.