Muthoot Microfin to Raise Rs 450 Crores via NCDs with 9.95% Coupon
Filing Summary
Muthoot Microfin Limited has announced a capital raise of Rs 450 crore through the issuance of secured, rated, listed non-convertible debentures (NCDs). The NCDs will offer coupon rates ranging from 9.70% to 9.95% per annum. The issuance will occur in two phases, with Rs 225 crore raised in December 2025 and January 2026. The NCDs are rated “CRISIL A+/Positive” and will be listed on the BSE. The funds will be utilized for onward lending, working capital, debt repayment, and general corporate purposes.
Muthoot Microfin Limited has announced a capital raise of Rs 450 crore through a private placement of secured, rated, listed non-convertible debentures (NCDs). The NCDs will offer coupon rates between 9.70% and 9.95% per annum. The issuance will be conducted in two phases, with Rs 225 crore to be raised in December 2025 and January 2026. The NCDs are rated “CRISIL A+/Positive” and will be listed on the BSE, providing liquidity for investors.
The financial structure of the issuance involves six tranches of Rs 75 crore each. The NCDs will be available in denominations of Rs 10,000 and Rs 1,00,000. They will carry tenures of 24 months and 36 months, with monthly interest payouts. The NCDs are secured by an exclusive first-ranking charge over the company’s receivables with a 1.05x security cover, backed by present and future unencumbered assets. Interest payments will be subject to TDS under Section 193 of the Income Tax Act.
The proceeds from the NCD issuance will be used to support onward lending, working capital needs, debt repayment or refinancing, and general corporate purposes. The issuance aims to enhance Muthoot Microfin’s medium-term capital base and increase its lending capacity in the microfinance sector. The funds will also support the company’s pan-India expansion efforts.
The issuance will be conducted in two phases, with the first phase scheduled for December 2025 and the second phase for January 2026. Each phase will consist of three tranches of Rs 75 crore each. KFin Technologies Limited will serve as the registrar for the issuance. The NCDs will be listed on the BSE, enabling liquidity for investors.
Muthoot Microfin Limited is a part of the Muthoot Pappachan Group, also known as Muthoot Blue. It is one of the leading listed microfinance institutions in India. The company focuses on promoting entrepreneurship among women and inclusive growth through micro loans. It serves 33.6 lakh active customers through 1,718 branches across 21 states and 392 districts, with a Gross Loan Portfolio of Rs 12,558 crore as of September 2025. The company is also part of the S&P BSE Financial Services Index.