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Muthoot Capital Clears ₹125 Crore NCD Issue at 9.5% Coupon, Strengthens Funding Pipeline


Updated: July 18, 2025 12:11

Image Source: HDFC Sky
Muthoot Capital Services Ltd has approved the issuance of ₹125 crore worth of Non-Convertible Debentures (NCDs) through private placement, reinforcing its capital structure and supporting lending operations. The Debenture Issue and Allotment Committee finalized the terms on July 9, 2025, with allotment scheduled for July 15.
 
Key Highlights:
  • The company will issue 12,500 rated, listed, senior, secured, redeemable, and taxable NCDs with a face value of ₹1,00,000 each.
  • The NCDs carry a fixed coupon rate of 9.5% per annum, with monthly interest payouts and a bullet repayment of principal at maturity.
  • Tenure of the instrument is 24 months, maturing on July 15, 2027, and the securities will be listed on the BSE.
Strategic Context:
  • The issuance follows a similar ₹100 crore NCD offering in June 2025, indicating a consistent strategy to tap debt markets for growth capital.
  • Muthoot Capital reported a net profit of ₹46.31 crore for FY25, with Q4 profit at ₹16.25 crore and AUM reaching ₹3,057.76 crore, up 8% sequentially.
  • The funds will be used for onward lending, refinancing, and general corporate purposes, aligning with the company’s retail finance focus.
Market Outlook:
  • Shares rose 2.44% to ₹338 post-announcement, reflecting investor confidence in the company’s financial discipline.
  • Analysts expect the NCD proceeds to support disbursement momentum and improve liquidity metrics amid rising credit demand.
Sources: CNBC TV18, Business Standard, MarketScreener, Muthoot Capital Services BSE Filings (July 2025)

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