Muthoot Finance to raise Rs 6,000 cr in FY12

Gold financing company Muthoot Finance on Monday said it plans to raise about Rs 6,000 crore in the current fiscal to meet working capital requirements.

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 6,000 crore. As we are raising Rs 1,000 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 said.

The company's Rs 1,000-crore public issue of the secured redeemable NCDs is opening on Tuesday.

The largest gold loan NBFC's average lending rate is 21.6 per cent with a net interest margin of 9.5 to 10 per cent, 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.

At present, promoters of Muthoot Finance hold 80 per cent stake in the company.