Muthoot Finance which has a public shareholding of 19.88% as of now, has to increase it to 25% within the timeframe given by SEBI
Mumbai: The country's largest gold loan company Muthoot Finance said it may dilute promoter stake by the end of this fiscal to comply with Securities and Exchange Board of India (SEBI)'s minimum public shareholding norms of 25%, reports PTI.
"We have an enabling resolution from the shareholders to raise the minimum public holding to 25%. We will do it through private placement. Though the timing has not been decided, we may go for it by the end of the fiscal," Muthoot Finance Executive Director KP Padmakumar told PTI over phone from
As per market regulator SEBI, privately promoted companies are expected to adhere by June 2013 to the norm of public shareholding at 25%.
Muthoot Finance which has a public shareholding of 19.88% as of now, has to increase it to 25% within the timeframe given by the regulator.
Padmakumar also said the company is planning to come out with an non-covertible debentures (NCDs) issue in the current quarter.
"We are planning to come up with an NCD issue in the current quarter. The amount and the exact timing have not been decided for the issue though," Padmakumar said.
The gold loan company had raised Rs994 crore in three tranches in 2012 through NCDs.
Meanwhile, the company reported 7% in growth in net profit at Rs270 crore in the third quarter of current financial year up from Rs251 crore a year ago, while its income grew by 11% to Rs1,365 crore.
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