Muthoot Fincorp, which is actually a part of Muthoot Pappachan Group, announced launching 100 crore Rupees non-convertible debenture (NCB) issue in order to fund the expansion of microfinance as well as small and medium enterprise (SME) business.
With the launch of this non-convertible debenture (NCB) issue, Muthoot Fincorp will hit the bond market. Microfinance as well as SME business of Muthoot Fincorp are grown as the part of diversification from the gold loans.
Muthoot Fincorp, at present, has 300 crore Rupees microfinance portfolio, which the company planned to double by end of 2013-14 fiscal year. Muthoot Fincorp also planned to built the SME as well as micro SME business in alliance by approximately 300 crore Rupees.
Muthoot Fincorp is one of the top most gold loan companies in India. Its rivals include Muthoot Finance and Mannapuram Finance.
It is important to note that Muthoot also acquired Panchratna Securities, the finance company in order to focus on the microfinance business. Muthoot, apart from this, has also applied to the Reserve Bank of India for NBFC-MFI registration as well as name change of the new subsidiary.