Muthoot Capital Services Limited has approved the issuance of Non-Convertible Debentures (NCDs) aggregating up to ₹150 crore on a private placement basis to raise capital. The Debenture Issue and Allotment Committee sanctioned the issuance of 15,000 NCDs, each with a face value of ₹1,00,000, carrying a coupon rate of 9.25% per annum. This debt issuance is secured and rated, with a tenure of 24 months, and will be listed on BSE Limited.

The NCDs are senior, redeemable, and taxable instruments. Interest will be paid quarterly, while the principal will be repaid in a bullet payment at maturity. The deemed date of allotment is June 29, 2026, with maturity set for June 29, 2028. The security structure includes a charge on standard loan receivables and current assets, held pari passu with existing secured creditors. The company must maintain a minimum asset coverage ratio of 1.1 times the outstanding debenture value until redemption.

In the event of a delay in interest or principal payment beyond the due date, a default interest rate of 1% per annum over the coupon rate will apply. The committee meeting was held on June 22, 2026, at the company's registered office in Kochi. Deepa Gopalakrishnan, Company Secretary & Compliance Officer, filed the outcome with the exchanges pursuant to SEBI regulations.

Key Details of the Issuance

The following table summarises the key terms and parameters of the NCD issuance:

Muthoot Capital Services Limited raised ₹85.11 crore through a securitization transaction on June 08, 2026, strengthening its liquidity position in Q1FY27. The company assigned receivables aggregating to ₹90.54 crore to secure the funding, adhering to guidelines prescribed by the Reserve Bank of India. This marks the second securitization transaction executed by the company during FY 2026-27.

The transaction was completed pursuant to Regulation 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The entire pool of receivables is sourced from the non-priority sector, reflecting the company's strategic allocation of assets.

Transaction Details

The securitization involved the following key figures:

The funds were raised in tranches, optimizing the capital structure while managing risk exposure. The assignment of receivables exceeding the amount raised indicates a coverage mechanism designed to protect investor interests.

Regulatory Context

The disclosure was submitted to BSE Limited and the National Stock Exchange of India Limited. Deepa G, Company Secretary & Compliance Officer, confirmed the transaction, which aligns with the Reserve Bank of India's guidelines for securitization of non-priority sector assets.