Promoters of leading gold loan company Muthoot Finance may dilute their stake by up to 10 per cent to raise funds in the next fiscal.
'We are exploring options to raise fresh equity for long-term resources to an extent promoters' holding dilution of another 10% from 80% now,' Muthoot Managing Director George Alexander Muthoot said.
However, this would be done if valuations are attractive to the company, and private placement to QIB, PE funds are most likely, he said.
The company is bullish on the business as gold is all set to become more expensive after the Budget has proposed to hike customs duty on gold imports and to impose excise duty on unbranded jewellery, he added.
'We remain bullish about the business, and the Union Budget was also good for us as our collateral becomes costlier. We are aiming 25-30% growth in 2012-13,' Muthoot said.
The company would add another 300-400 branches in the next fiscal, he said.
On the fund requirement of the firm, Muthoot said the company would require Rs6,000-7,000 crore in resources in combination of debt and equity.
The company has also launched public offer of the third series of secured NCDs ( non-convertible debentures) to raise up to Rs500 crore that will remain open till April 9.
The company had raised Rs1,155 crore from the last two offers.
Muthoot said bank finance had not stopped but the cost of funds had gone up after RBI's guidelines, which disallowed banks to treat loans to gold backed lending NBFCas as priority sector lending.
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'We are exploring options to raise fresh equity for long-term resources to an extent promoters' holding dilution of another 10% from 80% now,' Muthoot Managing Director George Alexander Muthoot said.
However, this would be done if valuations are attractive to the company, and private placement to QIB, PE funds are most likely, he said.
The company is bullish on the business as gold is all set to become more expensive after the Budget has proposed to hike customs duty on gold imports and to impose excise duty on unbranded jewellery, he added.
'We remain bullish about the business, and the Union Budget was also good for us as our collateral becomes costlier. We are aiming 25-30% growth in 2012-13,' Muthoot said.
The company would add another 300-400 branches in the next fiscal, he said.
On the fund requirement of the firm, Muthoot said the company would require Rs6,000-7,000 crore in resources in combination of debt and equity.
The company has also launched public offer of the third series of secured NCDs ( non-convertible debentures) to raise up to Rs500 crore that will remain open till April 9.
The company had raised Rs1,155 crore from the last two offers.
Muthoot said bank finance had not stopped but the cost of funds had gone up after RBI's guidelines, which disallowed banks to treat loans to gold backed lending NBFCas as priority sector lending.
....more info