New Delhi [India], Jan 17 : Largest gold financing company in India Muthoot Finance Ltd. will open the public issue of its Non-Convertible Debentures - Secured and Unsecured (NCDs) from today.

The company will announce its 16th series of Public Issue of Non-convertible Redeemable Debentures.

It has filed a shelf prospectus for issue of Secured Redeemable Non-Convertible Debentures ("Secured NCDs") of face value of Rs. 1,000 each aggregating up to Rs. 1300 crore and Unsecured Redeemable Non-Convertible Debentures ("Unsecured NCDs") of face value of Rs. 1,000 each aggregating up to Rs. 100 crore, totaling up to Rs. 1400 crore ("Shelf Limit").

Kochi, July 1 : The promoters of Muthoot Finance Limited, India's largest gold loan company, Monday submitted an application to the Reserve Bank of India for a license to offer full-fledged banking services.

The application is in accordance with the recent guidelines issued by the RBI for licensing of new banks in the private sector, said the firm.

Managing director George Alexander Muthoot said the application for a banking license is indeed a major milestone for the Muthoot Group.

India's leading gold loan company, Muthoot Finance Ltd has recorded a fall of 6.4 per cent during the quarter from January to March, 2013 compared to the same quarter of the previous year.

The company said that its net profit fell to Rs. 220 crore for the quarter mainly due to higher allocations for provisioning. Muthoot Finance also said in a statement that its income from operations recorded an increase of 9 per cent at Rs. 1,411 crore during the quarter from January to March, 2013 compared to the same quarter of the previous year.

It is believed that the gold pawn companies in India are likely to face a slowdown due to the falling price of the metal in the country and in the global markets.

The shares of Muthoot Finance Ltd increased today after the country's central bank released raft guidelines on gold linked guidelines.

The Reserve Bank of India (RBI) released draft guidelines based on the recommendations of the KUB Rao Committee. The KUB Rao Committee has reportedly said that there is no risk to the financial system because of gold loan NBFCs. George Alexander Muthoot, MD, Muthoot Finance noted that the recommendations from the committee will remove negative sentiment from in the market.

The shares of gold finance company, Muthoot Finance has recorded a fall of 20 per cent on Friday after the country's central bank, the Reserve Bank of India (RBI) introduced tighter rules for lending against gold in the country.

The RBI said on Wednesday that announced tightened rules for lending against gold by the finance companies in the country saying that it will increase risks to the banking system of India.

Muthoot Finance Corporation Ltd is planning to raise about Rs. 500 crore by divesting up to six percent of its promoters holding in the company, according to the Chairman and Managing Director Thomas John Muthoot.

"As part of our aggressive expansion plan, wherein we will be adding nearly 1,000 more outlets by the end of the fiscal, we are looking at a private placement of 5-6 per cent of the promoters' stake in Muthoot Fincorp, which would get us around Rs 500 crore," said Mr. Muthoot.

It was revealed in a recent report that the largest gold-loan offering firm, Muthoot Finance has announced a public issue of redeemable, secured and non-convertible debentures. They are of the revelation that this is being done in order to raise the sum of Rs 1000 crore for the funding of business plans.

The firm was of the view that it shall issue shares of total worth Rs. 500 crore. They shall come with an option of over-subscription up to Rs 500 crore. This would sum up to the total amount of the issue becoming Rs. 1000 per share.