L&T Finance Shriram City Muthoot Finance

L&T Finance, Shriram City Union Finance, Muthoot Homefin (subsidiary of Muthoot Finance) and Magma Fincorp have announced the launch of public issue to raise money by issuing non-convertible debentures (NCD).

Including the option to retain the amount of oversubscription, these three issues aim to raise Rs 2,550 crore. These NCDs are secured in nature and will be issued in dematerialised form only. Minimum application size is 10 NCD of Rs 1,000 each and thereafter in a multiple of 1 NCD.

Here are the details of the public issue:

Infographic: Ritesh Presswala/ Source: AK Stockmark, Karvy

While a AAA rating denotes a high level of safety, AA rating connotes a relatively lower safety. The same is reflected in the interest rates on offer. As one goes for riskier bonds, the interest rates on offer rise.

LTF, SCUF, MagFin and MHI have reserved 45 percent, 40 percent, 30 percent and 50 percent of their issue for retail individual investors, respectively.

LTF offered a tad higher yield in tranche 1 of its NCD issue it closed in March 2019. It offered 9.25 percent for 5 years tenure whereas it is offering…