Muthoot Microfin Allots ₹70.28 Crore Non-Convertible Debentures on Private Placement
Muthoot Microfin Limited successfully allotted 7,028 non-convertible debentures worth ₹70.28 crores on April 29, 2026, through private placement. The NCDs carry a face value of ₹1,00,000 each with an 8.50% annual coupon rate and quarterly payment schedule. The 29-month tenure debentures mature on September 29, 2028, and are secured by first ranking exclusive charge over company receivables. The allotment was approved by the Debenture Issue and Allotment Committee following prior board approval and will be listed on BSE Limited in dematerialized form.
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Muthoot Microfin Limited has completed a significant debt fundraising exercise through the allotment of non-convertible debentures worth ₹70.28 crores. The company's Debenture Issue and Allotment Committee approved the issuance on April 29, 2026, following regulatory compliance under SEBI listing obligations.
Debenture Issue Details
The allotment comprises 7,028 listed, rated, secured, redeemable non-convertible debentures issued on a private placement basis. Each debenture carries a face value of ₹1,00,000, aggregating to a total nominal value of ₹70,28,00,000.
| Parameter | Details |
|---|---|
| Number of NCDs | 7,028 |
| Face Value per NCD | ₹1,00,000 |
| Total Issue Size | ₹70.28 crores |
| Issue Type | Private Placement |
| Allotment Date | April 29, 2026 |
| Maturity Date | September 29, 2028 |
Interest and Security Structure
The debentures offer an attractive coupon rate of 8.50% per annum with quarterly interest payment schedule. The instruments carry a tenure of 29 months from the allotment date.
| Financial Terms | Specifications |
|---|---|
| Coupon Rate | 8.50% per annum |
| Payment Frequency | Quarterly |
| Tenure | 29 months |
| Security | First ranking exclusive charge on receivables |
| Charge Coverage | 1.00x over company's receivables |
Security and Listing Arrangements
The outstanding principal amount is secured by a first ranking and exclusive charge of 1.00x over the company's receivables, including present and future receivables that are free from encumbrances, charges, or liens. The debentures will be listed on BSE Limited and issued in dematerialized form.
Regulatory Compliance
The allotment was executed pursuant to Regulation 30 and other applicable regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The issuance falls within the limits previously approved by the Board of Directors at their meeting dated February 09, 2026, with the Debenture Issue and Allotment Committee having considered and approved the issuance on April 08, 2026.
Corporate Governance
The allotment process was overseen by Neethu Ajay, Chief Compliance Officer and Company Secretary, ensuring adherence to regulatory requirements and corporate governance standards. The company has maintained transparency by promptly informing stock exchanges about the completion of the allotment process.
Historical Stock Returns for Muthoot Microfin
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.11% | +1.51% | +25.41% | +12.97% | +25.42% | -27.72% |
How will Muthoot Microfin deploy the ₹70.28 crores raised to expand its microfinance operations and geographic reach?
What impact will the 8.50% quarterly interest payments have on the company's cash flow and profitability over the 29-month tenure?
Could this successful debt raise signal potential plans for additional fundraising rounds or an IPO in the near future?
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