Muthoot Capital Services Limited completed a securitization transaction on August 19, 2026, raising ₹29,80,63,471 (approximately ₹29.80 crore) in one tranche. The company assigned vehicle-finance receivables aggregating to ₹33,11,81,634 (approximately ₹33.11 crore) to facilitate the fund raise.

This marks the third securitization transaction executed by the company during FY27. The entire pool of assets assigned for this transaction belongs to the non-priority sector. The company confirmed that the transaction was structured in compliance with guidelines prescribed by the Reserve Bank of India.

Transaction Details

The disclosure was made pursuant to Regulation 30 and Regulation 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Deepa Gopalakrishnan, Company Secretary and Compliance Officer, signed the filing.

Muthoot Capital Services has confirmed the allotment of senior, secured, rated, listed, redeemable, taxable, transferrable, and non-convertible debentures (NCDs) up to ₹100 crore on a private placement basis. The Debenture Issue and Allotment Committee of the Board of Directors approved the issue and allotment during a meeting held on Tuesday, August 18, 2026. The company disclosed the transaction pursuant to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The proposed issue comprises 1,00,000 NCDs with a face value of ₹10,000 each, aggregating to ₹100 crore. The instruments are slated for listing on BSE Limited. The deemed date of allotment is set for August 24, 2026, while the maturity date is fixed for August 24, 2029, giving the instruments a tenor of 36 months.

Issue structure and terms

The NCDs carry a coupon rate of 9.25% per annum, payable monthly. Principal repayment follows a bullet payment structure at maturity. The securities are secured by a pari passu charge on the issuer's standard loan receivables and current assets, both present and future, held in favour of the Debenture Trustee. A minimum asset coverage ratio of 1.1 times the outstanding value of the debentures must be maintained throughout their tenor.

Rating and default provisions

The debentures carry a credit rating of 'AA-'. The instrument includes a step-up clause that increases the coupon by up to 25 basis points for each notch downgrade in the rating during the tenor. Conversely, if the rating is upgraded after a downgrade, the coupon decreases by 25 basis points for each notch upgrade, though it cannot fall below the initial coupon rate.

In the event of a default, defined as a delay in interest or principal payment for more than three months, the issuer will be liable to pay a default interest rate of 2% per annum over and above the coupon rate for the defaulting period.