Gold loan company Muthoot Finance is expected to raise Rs 500 crore by issuing non-convertible debentures (NCDs) during second week of November this fiscal.
The proposal to raise money through the pubic issue of debt securities was taken at the company's annual general meeting held on September 29 at Kochi, the company said in a statement.
"The next public issue of non-convertible debentures for Rs 500 crore is expected to open in second week of November," Chairman M G George Muthoot said during the meeting.
Earlier, in April this year, the company had raised a similar amount of Rs 500 crore through a public issue of NCDs.
Last fiscal, the company had raised a sum of Rs 1,239 crore through three public issue of NCDs.
On rating upgrade, Muthoot Finance said it will enable the company to get finer rates from financial institutions and banks enabling it to reduce our cost of borrowings.
"The rating upgrade is a reflection of consistent performance inspite of going through turbulent times in the last four years as well as improvement in financial performance last year," said Muthoot.
Company's market capitalisation crossed Rs 15,000 crore for the first time in August 2016, he added.
The capital adequacy ratio as of March 31, 2016 stood at 24.48 per cent, well above the regulatory minimum of 15 per cent.
Country's largest gold financing company in terms of loan portfolio, Muthoot Finance provides personal and business loans secured by gold jewellery, mainly to customers who can't access formal credit within a reasonable time.
Muthoot Finance stock closed 2.10 percent up at Rs 349.85 on BSE.
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