Muthoot Microfin allots ₹250 crore secured NCDs at 9.25% coupon
- Muthoot Microfin allotted ₹250 crore of secured NCDs via private placement
- Instruments carry a 9.25% annual coupon with monthly interest payments
- Tenure is 24 months, maturing on September 8, 2028
- Debt is secured by a first-ranking charge over company receivables
- Securities are listed on BSE Limited
*this image is generated using AI for illustrative purposes only.
Muthoot Microfin has allotted ₹250 crore worth of secured, listed non-convertible debentures (NCDs) through a private placement. The instruments carry an annual coupon rate of 9.25% and mature in September 2028.
Allotment details
The Debenture Issue and Allotment Committee approved the allotment on September 8, 2026, following Board approval dated June 30, 2026. The issuance consists of 250,000 debentures with a face value of ₹10,000 each.
The following table summarises the key terms of the issuance:
| Parameter | Details |
|---|---|
| Total value | ₹250 crore |
| Number of NCDs | 250,000 |
| Face value per NCD | ₹10,000 |
| Placement type | Private placement |
| Annual coupon rate | 9.25% |
| Interest payment schedule | Monthly |
| Tenure | 24 months |
| Date of allotment | September 8, 2026 |
| Maturity date | September 8, 2028 |
| Security | First ranking charge over receivables |
| Listing | BSE Limited |
The NCDs are secured by a first-ranking and exclusive charge of 1.0x over the company’s present and future receivables, which are free from encumbrances. Interest is payable monthly. The securities have been listed on the BSE Limited.
This private placement route allows financial institutions to raise debt capital from select institutional and qualified investors outside the public issuance process. The allotment was made within the limits approved by the Board of Directors.
Historical Stock Returns for Muthoot Microfin
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.84% | -1.11% | -5.82% | +26.93% | +18.06% | 0.0% |
How will the monthly interest outflows from this ₹250 crore issuance impact Muthoot Microfin's net interest margin and overall profitability in FY27-28?
What specific growth initiatives or asset expansion plans is Muthoot Microfin funding with these proceeds, and how might this affect its loan book growth trajectory?
Given the 9.25% coupon rate, how does this compare to prevailing market rates for similar microfinance NCDs, and what does it signal about investor sentiment toward the sector?
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