Muthoot Microfin Limited's Debenture Issue and Allotment Committee has approved the issuance of Non-Convertible Debentures (NCDs) worth ₹150.00 crores through private placement. The approval was granted during the committee's meeting held on January 20, 2026, which commenced at 6:30 PM and concluded at 7:00 PM.

NCD Issuance Details

The committee approved two distinct NCD offerings with different terms and structures:

Interest Rates and Tenure Structure

The approved NCDs offer competitive interest rates with monthly payment schedules:

Security and Charge Details

All NCDs will be secured by a first ranking and exclusive charge of 1.05x over the company's receivables, including present and future receivables. These receivables are free from any encumbrances, charges, or liens, providing security to debenture holders.

Cancellation of Previous Tranche

The company announced the cancellation of a previously intimated NCD tranche worth ₹150.00 crores that was announced on November 27, 2025. This cancelled tranche comprised 15,000 secured, rated, listed, redeemable, taxable NCDs with a face value of ₹1,00,000.00 each. The cancellation was attributed to unforeseen circumstances, and the company confirmed that this tranche will not be issued.

Regulatory Compliance

The issuance has been approved within the limits sanctioned by the Board of Directors and shareholders of the company. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full regulatory compliance. The company has provided comprehensive details as required under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Source:

Muthoot Microfin Limited has settled a penalty of ₹40.08 lakhs with the Regional Provident Fund Commissioner, Kochi, for delayed remittance of provident fund dues. The company received an order under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, proposing levy of damages and interest on account of delayed PF contributions.

Penalty Details and Timeline

The order, dated January 6, 2026 and received by the company on January 9, 2026, covers the period from April 1, 2019 to March 31, 2024. The penalty amount and key details are outlined below:

COVID-19 Related Delays

The major portion of the demand relates to the national lockdown period in April 2020 during the COVID-19 pandemic. Despite total closure of offices and branches, Muthoot Microfin took a proactive, employee-centric approach by providing financial support through advance salaries to ensure workforce well-being during the crisis.

The company formally treated these advances as salary in February 2021 and promptly remitted the requisite Provident Fund contributions in March 2021. However, the EPFO treated this specific timeline, along with certain other minor administrative delays in other periods, as delayed remittances under the Act.

Regulatory Compliance and Settlement

In the interest of regulatory compliance and to avoid further litigation costs, the company has remitted the full penal damages amount. The settlement details are as follows:

• Amount Paid: ₹40.08 lakhs (Rupees Forty Lakhs Eight Thousand Only)
• Payment Status: Completed with Regional Provident Fund Commissioner, Kochi
• Proceedings Status: Closed upon payment
• Financial Impact: No material impact anticipated beyond the penalty amount

Company's Position

Muthoot Microfin has stated that it does not anticipate any material impact on its financial position, operations, or other activities arising from this matter, other than the penalty amount paid. The company has fulfilled all disclosure requirements under SEBI regulations and informed both BSE and NSE about the settlement.

The matter demonstrates the company's commitment to regulatory compliance while highlighting the challenges faced by financial institutions during the unprecedented COVID-19 lockdown period when employee welfare measures sometimes resulted in administrative complexities with regulatory timelines.