Public issue of secured, redeemable, non-convertible debentures (NCDs) of face value of Rs 1,000 each aggregating upto Rs 250 crore with an option to retain oversubscription upto Rs 250 crore, aggregating to a total of upto Rs 500 crore by Muthoot Finance

The face value of each NCD is Rs 1,000 and the minimum application money is Rs. 10,000  for 10 NCDs  (Option I, Option II, Option III, Option IV and Option V either taken individually or collectively) and in multiples of one NCD thereafter.

The NCDs will be listed on BSE and NSE

The NCDs have been rated AA-/Stable by CRISIL and AA- /Stable by ICRA for an amount of upto Rs 500 crore.

The five difference options of NCD are:

Option I: The maturity date is 24 months from the deemed date of allotment and the interest is payable annually. The coupon rate and effective yield is 11.50% p.a. for NCD Holders in Category I, Category II and Category III.

Option II: The maturity date is 36 months from the deemed date of allotment and the interest is payable annually. The coupon rate and effective yield is 11.75% p.a. for NCD Holders in Category I, Category II and Category III.

Option III: The maturity date is 60 months from the deemed date of allotment and the interest is payable monthly. The coupon rate is 11.75% and effective yield is 12.40 % p.a. for NCD Holders in Category I, Category II and Category III.

Option IV: The maturity date is 60 months from the deemed date of allotment and the interest is payable annually. The coupon rate and effective yield is 12.00% p.a. for NCD Holders in Category I, Category II and Category III.

Option V: The maturity date is 72 months from the deemed date of allotment and effective yield is 12.25% p.a. and investment amount doubles in 6 years for NCD Holders in Category I, Category II and Category III.

The funds raised through this Issue will be utilised by the Company for various financing activities including lending and investments, to repay existing liabilities or loans and towards business operations including for capital expenditure, working capital requirement and other general corporate purposes, after meeting the expenditures of and related to the Issue and subject to applicable statutory/regulatory requirements.

The lead managers to the issue are:

ICICI Securities Limited, A.K.Capital Services Limited, Edelweiss Financial Services Limited, Karvy Investor Services Limited, RR Investors Capital Services (P) Limited and SBI Capital Markets Limited.

Physical and Demat options available.

Cheque / DD should be drawn in favour of ‘“Escrow Account Muthoot Finance NCD Public Issue”.

Issue opens on 17.2.2012

Issue closes on 5.10.2012

Allotment of first come first served basis