Muthoot Capital Services Limited issued commercial paper aggregating ₹20 crore on October 1, 2026, at a discount rate of 8.82%. The short-term debt instrument has a tenure of 270 days and matures on June 28, 2027.

The allotment was made to Unity Small Finance Bank Limited. The issue carries a credit rating of CRISIL A1+, indicating the highest degree of safety regarding timely servicing of financial obligations. The price per unit was set at 93.8752.

Issue details

The company disclosed the issuance terms in a filing to stock exchanges under Regulation 30 of SEBI (LODR) Regulations, 2015. Key parameters of the commercial paper are outlined below:

What the numbers show

The issuance highlights Muthoot Capital's reliance on high-rated short-term instruments for liquidity management. With a CRISIL A1+ rating, the company secured funding at an 8.82% discount rate, reflecting its strong credit standing in the non-banking finance sector. The single allottee structure suggests a targeted placement rather than a broad market offering.

Muthoot Capital Services has scheduled a meeting of its Debenture Issue and Allotment Committee for Saturday, October 3, 2026. The committee will consider and approve the proposed issuance of Non-Convertible Debentures (NCDs) on a private placement basis.

This announcement follows the recent allotment of ₹150 crore in NCDs in September 2026. The upcoming issuance falls within the overall limits previously sanctioned by the Board of Directors and shareholders of the company. The disclosure was filed with the BSE Limited and National Stock Exchange of India Limited on September 29, 2026, citing compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Recent Allotment Details

In September 2026, the company allotted NCDs worth ₹150 crore via private placement. The allotment, approved by the Debenture Issue and Allotment Committee on September 23, 2026, comprised 15,000 securities of face value ₹1,00,000 each.

The issue consisted of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable NCDs. The base issue size was ₹75 crore, fully subscribed along with the oversubscription option (Green Shoe) of ₹75 crore, resulting in the total allotment of ₹150 crore.

The debentures from the September allotment will be listed on the BSE Limited. Interest payments are made quarterly, while the principal amount is repaid in a bullet payment at maturity.

Security and Rating Features

The NCDs are secured by a pari passu charge on the issuer’s standard loan receivables and current assets, both present and future. This security is in favor of the Debenture Trustee and must maintain a minimum asset coverage ratio of 1.1 times the outstanding value of the debentures until redemption.

The instruments carry a credit rating of AA-. The coupon rate includes a step-up feature: it will increase by 25 bps for each notch downgrade in the rating during the tenor. Conversely, if the rating is upgraded, the coupon will decrease by 25 bps for each notch upgrade, restoring to the initial rate if the AA- rating is regained. The coupon rate will never fall below the initial 9.25%.

In the event of a default in interest or principal payment exceeding three months, a default interest rate of 2% per annum over the coupon rate will apply for the defaulting period.

Deepa Gopalakrishnan, Company Secretary and Compliance Officer, signed the disclosures for both the recent allotment and the upcoming meeting.