Mufin Green Finance Limited has allotted ₹50 crore worth of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (NCDs) through a private placement. The allotment was confirmed on August 7, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This capital raise strengthens the company’s debt financing structure with secured instruments carrying an 11.00% annual coupon rate.

The issuance involves 50,000 NCDs, each with a face value of ₹10,000. The securities are proposed to be listed on BSE Limited. The Board of Directors approved the terms, which include a fixed tenure of 15 months from the date of allotment. Interest payments are structured to be made monthly, providing regular cash flow obligations for the issuer while offering predictable returns to investors.

Security for the debentures is provided through the hypothecation of receivables and book debts. This collateral structure aligns the security coverage with the company’s core asset base. There are no special rights, interests, or privileges attached to these instruments beyond the standard terms outlined in the offer document.

Key Terms of Allotment

Repayment Structure

The principal repayment is not due at maturity but is staggered towards the end of the tenure. Investors will receive the principal amount in two installments during the 14th and 15th months from the date of allotment. This structure implies that the final two months of the 15-month tenure are dedicated to principal redemption, following 13 months of interest-only payments.

What the Numbers Show

The decision to secure the debt via hypothecation of receivables suggests a reliance on future cash inflows from operations or lending activities as primary collateral. With a monthly coupon frequency, the issuer must maintain consistent liquidity management to meet interim interest obligations before the bulk principal repayment occurs in the final quarter of the instrument's life. The absence of any default history or delay in prior interest payments indicates a clean compliance record for this specific issuance cycle.

Mufin Green Finance Limited has approved the issuance of listed, secured non-convertible debentures (NCDs) worth up to ₹125 crore through a private placement. The Management Committee of the Board of Directors finalized the terms during its meeting on July 31, 2026, authorizing two distinct tranches: one for ₹50 crore and another for ₹75 crore. Both issuances include an oversubscription option (Green Shoe Option) of ₹25 crore each, allowing the company to raise additional funds if investor demand exceeds initial allocations.

The decision marks a concrete step in the company’s capital-raising strategy, moving from consideration to execution. The funds are intended to support business operations and expansion, leveraging debt financing to optimize the capital structure. By opting for a private placement, Mufin Green Finance targets specific institutional or high-net-worth investors, streamlining the fundraising process compared to a public issue. The debentures will be listed on the Bombay Stock Exchange (BSE), ensuring liquidity for investors while maintaining the controlled nature of a private placement.

Issue Structure and Terms

The approved NCDs are structured into two series with varying face values and interest rates to cater to different investor preferences. Both instruments are secured by a first and exclusive charge on identified receivables via hypothecation, providing collateral security to debenture holders. The tenure for both tranches is set at 15 months from the date of allotment.

Tranche 1 offers a higher coupon rate of 11% with monthly interest payments starting from the date of allotment, appealing to investors seeking regular income streams. In contrast, Tranche 2 provides a slightly lower coupon of 10.85% but delays interest payments until the 12th month from allotment, which may suit investors looking for deferred income or capital appreciation strategies.

Regulatory Compliance and Next Steps

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Clause A(2)(2.1) of Annexure 18 of SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. This regulation mandates listed entities to disclose the outcome of board meetings where material transactions are transacted.

Mayank Pratap Singh, Company Secretary & Compliance Officer of Mufin Green Finance Limited, signed the intimation issued from the company’s registered office in New Delhi on July 31, 2026. The final allotment and specific dates for interest and principal payments will be determined upon the completion of the private placement process. Investors should monitor subsequent filings for the final allotment status and listing dates.

What the Numbers Show

The dual-tranche structure suggests a strategic approach to diversify the investor base. By offering different payment frequencies and face values, Mufin Green Finance can attract both retail-oriented high-net-worth individuals (via the ₹10,000 face value tranche) and larger institutional players (via the ₹1,00,000 face value tranche). The use of receivables as security indicates that the company has a robust portfolio of assets that can be leveraged for funding without diluting equity. The 15-month tenor aligns with short-to-medium-term working capital needs, suggesting the funds may be used for immediate operational scaling rather than long-term infrastructure projects.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE08KJ01020/17a2dd42b0af42b3.pdf