Muthoot Capital approves ₹200 crore NCD issue at 9.25% coupon
- Approved NCD issue of up to ₹200 crore at 9.25% coupon
- Tenure of new issue is 36 months with bullet principal repayment
- Follows recent ₹150 crore NCD allotment completed in September 2026
- Instruments carry AA- credit rating with pari passu security
*this image is generated using AI for illustrative purposes only.
Muthoot Capital Services has approved the issuance of Non-Convertible Debentures (NCDs) worth up to ₹200 crore on a private placement basis. The Debenture Issue and Allotment Committee sanctioned the deal during its meeting held on Saturday, October 3, 2026.
This new approval follows the recent allotment of ₹150 crore in NCDs in September 2026. The upcoming issuance falls within the overall limits previously sanctioned by the Board of Directors and shareholders of the company. The disclosure was filed with the BSE Limited and National Stock Exchange of India Limited on October 3, 2026, citing compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
New allotment details
The committee approved the issue of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable NCDs aggregating up to ₹200 crore. The issue comprises up to 2,00,000 securities with a face value of ₹10,000 each. The deemed date of allotment is October 14, 2026, with a maturity date of October 14, 2029.
| Particulars | Details |
|---|---|
| Issue size | Up to ₹200 crore |
| Base issue | Up to ₹200 crore |
| Tenure | 36 months |
| Coupon rate | 9.25% per annum |
| Payment frequency | Monthly |
| Principal repayment | Bullet |
| Deemed allotment date | October 14, 2026 |
| Maturity date | October 14, 2029 |
| Credit rating | AA- |
| Security | Pari passu charge on standard loan receivables and current assets |
The debentures will be listed on the BSE Limited. Interest payments are made monthly, while the principal amount is repaid in a bullet payment at maturity.
Recent allotment details
In September 2026, the company allotted NCDs worth ₹150 crore via private placement. The allotment, approved by the Debenture Issue and Allotment Committee on September 23, 2026, comprised 15,000 securities of face value ₹1,00,000 each.
The issue consisted of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable NCDs. The base issue size was ₹75 crore, fully subscribed along with the oversubscription option (Green Shoe) of ₹75 crore, resulting in the total allotment of ₹150 crore.
| Particulars | Details |
|---|---|
| Issue size | ₹150 crore |
| Base issue | ₹75 crore |
| Oversubscription option | ₹75 crore |
| Tenure | 24 months |
| Coupon rate | 9.25% per annum |
| Payment frequency | Quarterly |
| Principal repayment | Bullet |
| Deemed allotment date | September 23, 2026 |
| Maturity date | September 22, 2028 |
| Credit rating | AA- |
| Security | Pari passu charge on standard loan receivables and current assets |
The debentures from the September allotment will be listed on the BSE Limited. Interest payments are made quarterly, while the principal amount is repaid in a bullet payment at maturity.
What the numbers show
The consistent 9.25% coupon rate across both the September ₹150 crore allotment and the newly approved ₹200 crore issue indicates stable funding costs for the NBFC despite varying tenures (24 months vs 36 months). While the September issue saw full subscription including oversubscription options, the new approval maintains the same pricing structure, suggesting sustained investor appetite at this yield level for Muthoot Capital's debt instruments.
Historical Stock Returns for Muthoot Capital Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.37% | -4.23% | -9.30% | +21.87% | -21.75% | -44.87% |
How will the combined ₹350 crore debt raised in September and October impact Muthoot Capital's leverage ratio and cost of funds in the upcoming fiscal quarter?
Given the shift to monthly interest payments for the new 36-month NCDs, how might this affect the company's short-term liquidity management compared to the quarterly structure of the previous issue?
Will the sustained AA- credit rating and stable 9.25% coupon rate enable Muthoot Capital to secure lower-cost financing from institutional investors in future public issues?
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