Muthoot Microfin Limited has successfully completed the allotment of 75,000 senior secured redeemable non-convertible debentures (NCDs) worth ₹75.00 crores. The company informed stock exchanges on January 06, 2026, about the completion of this significant fundraising initiative under its Series B debentures program.

Allotment Details and Regulatory Compliance

The Debenture Issue and Allotment Committee approved the final allotment on January 06, 2026, following the initial approval from the Board of Directors on May 8, 2025. The company has filed the necessary intimation with BSE Limited and National Stock Exchange of India Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Security and Payment Structure

The NCDs are secured by a first ranking and exclusive charge of 1.05x over the company's receivables, including present and future receivables that are free from any encumbrances. The debentures offer a 9.70% annual coupon rate with monthly payment schedule, providing regular income to investors throughout the 23-month tenure.

Series B Debentures Framework

These Series B debentures are part of a larger framework involving up to 1,50,000 NCDs across two series (Series A and Series B). The current allotment represents the second series of the company's comprehensive debt fundraising program conducted on a private placement basis. The listed, rated, senior secured, transferable, and redeemable nature of these debentures provides multiple layers of investor protection and liquidity options.

Strategic Capital Raising

This successful completion of the ₹75.00 crore NCD allotment demonstrates Muthoot Microfin's ability to access debt capital markets effectively. The regulatory compliance and timely completion of the allotment process reflects the company's commitment to transparency and adherence to market regulations, strengthening its position in the microfinance sector.

Muthoot Microfin Limited has achieved a significant business milestone, announcing that its Individual Loan portfolio Assets Under Management (AUM) has crossed ₹1,000 crore while the company's overall AUM has surpassed ₹13,000 crore. This development marks an important step in the NBFC-MFI's journey toward building a more diversified and resilient lending portfolio.

Portfolio Diversification Strategy

The milestone reflects Muthoot Microfin's steady progress in strengthening its diversified lending portfolio while maintaining microfinance as the foundation of its business operations. The company attributed the expansion of the individual loan book to disciplined underwriting practices, focused execution at the branch level, and a sustained emphasis on portfolio quality that complements the company's core microfinance operations.

Operational Performance and Network Reach

Muthoot Microfin continues to demonstrate stable operating performance, supported by improving disbursement momentum, strong customer engagement, and consistent collection efficiency. As of September 30, 2025, the company maintains a robust operational network serving a substantial customer base across India.

Management Commentary

Thomas Muthoot, Chairman and Non-Executive Director of Muthoot Microfin, emphasized that these achievements mark an important milestone in the company's growth journey. He highlighted that the company has expanded its individual lending business alongside its core microfinance operations as part of a broader portfolio strategy, while microfinance remains the foundation of the business.

Sadaf Sayeed, Chief Executive Officer of Muthoot Microfin, noted that the individual loan portfolio has grown with credit assessment and collection processes in place to manage risk. The portfolio has been built with disciplined credit assessment and strong collection processes, ensuring healthy performance as it grows.

Strategic Focus and Future Direction

Muthoot Microfin remains focused on microfinance-led lending, primarily to women borrowers, while selectively expanding into other loan segments to support long-term growth. The company continues to invest in strengthening its risk management framework, operational efficiency, and digital capabilities to enhance customer experience and portfolio resilience.

The company stated that it is strengthening its risk management and operational framework as it scales its business. As one of India's leading listed MFIs and part of the Muthoot Pappachan Group with a legacy of 138+ years, Muthoot Microfin continues its mission of delivering financial services to underprivileged and disadvantaged populations in rural sectors through affordable terms, quick turnaround times, and hassle-free processing.