Funding on Fast-Forward: Muthoot Capital Unleashes ₹25 Crore Commercial Paper, Ramps Up Securitization

Muthoot Capital Services Ltd has ramped up its fundraising activities in June 2025, issuing commercial paper worth ₹25 crore, completing a significant securitization transaction, and allotting non-convertible debentures (NCDs) to strengthen its capital base and support business growth.

 

Key Highlights

 

Commercial Paper Issuance

 

Muthoot Capital Services issued commercial paper (CP) worth ₹25 crore (₹250 million) on June 23, 2025.

 

The CP, bearing ISIN INE296G14545, was allotted to Transport Corporation of India Limited.

 

The paper carries a discount rate of 9.10% and is set to mature on December 20, 2025, with a tenure of 180 days and a price of 95.7051.

 

The issue received a top-tier CRISIL A1+ rating, reflecting high credit quality and low default risk.

 

Securitization Milestone

 

On June 20, 2025, Muthoot Capital completed its second securitization transaction for FY 2025-26, raising ₹110.10 crore through securitization of loan receivables worth ₹115.89 crore.

 

This move is aimed at further diversifying funding sources and optimizing the balance sheet.

 

NCD Allotment

 

Earlier in June, the company allotted 75,000 NCDs totaling ₹75 crore at a 10% annual coupon rate, with listing on the BSE.

 

The NCDs were issued in two series with maturities of 12 and 18 months, offering investors both monthly interest payouts and partial principal redemptions.

 

Strategic Implications

 

These back-to-back fundraising activities underscore Muthoot Capital Services' proactive approach to liquidity management and funding diversification. The combination of commercial paper, securitization, and NCDs positions the company to capitalize on growth opportunities while maintaining a robust financial profile.

 

"Muthoot Capital Services' successful fundraising through multiple instruments signals strong investor confidence and a strategic focus on balance sheet resilience."

 

Source: StockInsights.ai, MarketScreener