Muthoot Capital Services Takes QIP Route to Raise Rs. 165 crore
Kochi: Muthoot Capital Services Ltd., a Muthoot Pappachan Group company, has successfully raised Rs. 165 crore of Tier-I capital through the Qualified Institutional Placement (QIP) route. The issue enhances the Capital Adequacy position of the company as on September 30, 2017 from 15.40 per cent to 26.70 per cent. The debt leveraging based on the September 30, 2017 figures adjusted for the Equity Infusion through the QIP is at 2.9 times.
The QIP was subscribed to by mutual fund majors like Birla, DSP Blackrock, IDBI, SBI, Sundaram and other investors like Morgan Stanley France, Aurigin Master Fund Singapore and Goldman Sachs.
Thomas George Muthoot, Managing Director, Muthoot Capital Services Ltd. said, “In the last 18 months, we have made steady progress in diversifying outside south India, controlling operating costs and improving asset quality. The capital raised will strengthen our balance sheet, facilitate growth and lower our borrowing costs. It will also be an impetus for further growth and moving into new products”.
Said Madhu Alexiouse, Chief Operating Officer of the company, “We are targeting a higher growth for the next few years. We are also looking at additional sources of funding including NCDs and more securitization transactions’’.
After the QIP, the promoter stake will come down from 74.93 per cent to 62.5 per cent.