The country's largest gold loan company Muthoot Finance Monday said it may dilute promoter stake by the end of this fiscal to comply with SEBI's minimum public shareholding norms of 25 percent.
Mumbai: The country's largest gold loan company Muthoot Finance Monday said it may dilute promoter stake by the end of this fiscal to comply with SEBI's minimum public shareholding norms of 25 percent.
"We have an enabling resolution from the shareholders to raise the minimum public holding to 25 percent. 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 K P Padmakumar said.
As per market regulator SEBI, privately promoted companies are expected to adhere by June 2013 to the norm of public shareholding at 25 percent.
Muthoot Finance which has a public shareholding of 19.88 percent as of now, has to increase it to 25 percent within the timeframe given by the regulator.
Padmakumar also said the company is planning to come out with an NCD (non-covertible debenrure) 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 Rs 994 crore in three tranches in 2012 through NCDs.
Meanwhile, the company today reported 7 percent in growth in net profit at Rs 270 crore in the third quarter of current financial year up from Rs 251 crore a year ago, while its income grew by 11 percent to Rs 1,365 crore.