Trilegal advised Muthoot Finance on its Tranche II issue of non-convertible debentures (NCDs) raising INR7 billion (USD 84.12 million).
Muthoot Finance’s NCD deal marks one of the initial public issuances after the Securities and Exchange Board of India (issue and listing of non-convertible securities) (second amendment) Regulations, 2023, took effect. The regulations introduced alterations to the disclosure requirements for NCD public offerings.
“We have been advising Muthoot Finance Limited on their public issuance of non-convertible debentures since one of their initial issuances and from the time when the public issue of NCDs were not very common,” said Richa Choudhary, one of the partners who led the Trilegal transaction team.
She added that amendments to the SEBI regulations were an evolving landscape. “We have worked closely with the issuer and merchant bankers to appropriately reflect such amendments effectively and efficiently and facilitated a successful closure of their public debt issues.,” she said.
Partners Choudhary and Joseph Jimmy led the Trilegal team with the support of counsel Archana Rawat, senior associate Avanti Kale, and associates Lalitha Nandula, Aman Bahl and Kaaba Khan.
Muthoot Finance is currently the largest non-banking financial corporation in India, specialising in gold loans. The NCDs issued in this transaction were secured, rated, listed and redeemable, with a face value of USD12 or INR1,000 each.
The offering initially raised INR1 billion (USD12 million), with an option to potentially retain oversubscriptions up to a staggering INR6 billion. This falls within the predefined shelf limit of INR26 billion.