Muthoot Microfin approves ₹250 Cr secured NCDs at 9.25% coupon
- Muthoot Microfin approves ₹250 crore secured NCD issuance via private placement
- Instruments carry a 9.25% annual coupon payable monthly over 24 months
- Debt is secured by first-ranking charge on company receivables
- Deal sanctioned by committee on August 28, 2026
*this image is generated using AI for illustrative purposes only.
Muthoot Microfin has approved the issuance of ₹250 crore in secured, rated, listed, redeemable Non-Convertible Debentures (NCDs) through a private placement. The Debenture Issue and Allotment Committee sanctioned the deal during its meeting on August 28, 2026.
The company notified the BSE and NSE regarding the outcome of the corporate action. The move aligns with standard regulatory disclosure requirements for debt fundraising activities under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Deal Terms
The issuance comprises up to 250,000 NCDs with a face value of ₹10,000 each. The instruments carry a coupon rate of 9.25% per annum, payable monthly. The tenor is set at 24 months, with a deemed date of allotment on September 8, 2026, and maturity on September 8, 2028.
| Particulars | Details |
|---|---|
| Issue Size | ₹250 crore |
| Coupon Rate | 9.25% p.a. |
| Tenure | 24 months |
| Maturity Date | September 8, 2028 |
| Security | First ranking charge over receivables |
Security and Compliance
The outstanding principal amount and accrued interest will be secured by a first-ranking and exclusive charge of 1.0x over the company’s receivables, including present and future receivables free from encumbrances. Neethu Ajay, Chief Compliance Officer and Company Secretary, signed the communication confirming the approval within the limits set by the Board of Directors and shareholders.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE046W01019/56efbc7e-a2ad-4acd-bd90-b05723189cad.pdf
Historical Stock Returns for Muthoot Microfin
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.28% | -3.93% | -10.24% | +23.02% | +9.07% | -29.08% |
How will the 9.25% coupon rate on these NCDs impact Muthoot Microfin's overall cost of debt and net interest margins compared to its existing funding mix?
What specific growth initiatives or asset expansion plans is Muthoot Microfin prioritizing with the ₹250 crore raised through this private placement?
Given the 1.0x charge over receivables as security, how might this encumbrance affect the company's future borrowing capacity or credit rating outlook?
15
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
