Muthoot Microfin Allots Rs 750 Crore Non-Convertible Debentures

Muthoot Microfin Limited , a prominent player in the microfinance sector, has successfully raised ₹750 crore through the allotment of non-convertible debentures (NCDs). This move marks a significant step in Muthoot Microfin's financial operations.

Debenture Details

The company has allotted 75,000 senior secured non-convertible debentures through private placement. Here are the key details of the debenture issue:

Parameter	Details
Face Value per Debenture	₹10,000.00
Total Issue Size	₹750.00 crore
Coupon Rate	9.70% per annum
Payment Schedule	Monthly
Tenure	24 months
Maturity Date	December 03, 2027
Series	Series A

Strategic Implications

This NCD issuance is likely aimed at strengthening the company's financial position and potentially funding its growth initiatives in the microfinance sector.

Conclusion

The successful placement of these NCDs demonstrates Muthoot Microfin's ability to attract institutional investment and its commitment to diversifying its funding sources. As the microfinance sector continues to play a crucial role in financial inclusion, such capital-raising activities may help Muthoot Microfin expand its reach and impact in the future.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.69%	+1.59%	-1.68%	+35.54%	-1.85%	-33.17%

Muthoot Microfin , a prominent player in the microfinance sector, has successfully raised ₹375 crore through the issuance of non-convertible debentures (NCDs) in two separate tranches. This strategic move is aimed at bolstering the company's capital base and supporting its ongoing operations.

Debenture Issuance Details

The company has issued two sets of debentures:

Particulars	Tranche 1	Tranche 2
Number of Debentures	12,500	25,000
Face Value	₹1,00,000	₹1,00,000
Total Value	₹125.00 crore	₹250.00 crore
Type	Rated, Unsubordinated, Secured, Listed, Taxable, Transferable, Redeemable NCDs	Secured, Rated, Listed, Redeemable, Taxable NCDs
Issuance Type	Private Placement	Private Placement
Listing	BSE Limited	BSE Limited

Key Features of the Debentures

Tranche 1 (₹125.00 crore):

Tenure: 24 months
Allotment Date: November 4, 2025
Maturity Date: November 4, 2027
Interest Rate: 9.80% per annum, payable monthly
Security: First ranking, exclusive, and continuing charge on identified receivables with 1.1 times coverage of the outstanding debenture amount

Tranche 2 (₹250.00 crore):

Series I:
- Amount: ₹75.00 crore (with green-shoe option of ₹25.00 crore)
- Tenure: 24 months
- Interest Rate: 9.90% per annum, payable monthly
Series II:
- Amount: ₹75.00 crore (with green-shoe option of ₹75.00 crore)
- Tenure: 36 months
- Interest Rate: 10.00% per annum, payable monthly
Security: Exclusive charge on specific asset portfolio of receivables with a security cover of 1.05 times

Implications for Muthoot Microfin

This successful debenture issuance demonstrates Muthoot Microfin's strong standing in the debt market and its ability to attract institutional investors. The raised capital is expected to enhance the company's lending capabilities and support its growth strategies in the competitive microfinance sector.

The varied tenure and interest rate options across the two tranches suggest a thoughtful approach to managing the company's debt profile, balancing short-term and medium-term funding needs.

As the microfinance industry continues to play a crucial role in financial inclusion, Muthoot Microfin's capital raise positions it well to expand its reach and impact in serving underbanked communities across India.