Muthoot Capital Services Ltd, one of India's top non-banking financial companies (NBFC), has declared the successful sale of commercial paper for ₹50 million. This step is designed to increase the liquidity level of the company and aid its continuous growth initiatives in India's vibrant retail lending industry.
Important Points:
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Commercial Paper Issuance: Muthoot Capital Services has mobilised ₹50 million by issuing commercial paper, an instrument of short-term debt, to provide funding for its short-term working capital needs and improve funding cost savings.
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Strategic Financial Move: The amount mobilised would be utilised in increasing the company's loan book, bolstering its liquidity buffer, and making its operations go smoothly within a competitive lending ecosystem.
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Business Impact: With its healthy balance sheet, the incremental capital infusion is likely to enable Muthoot Capital to sustain growth in consumer finance, particularly in two-wheeler and personal loans segments.
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Market Perspective: The successful issue is a testimonial to high market confidence in the financial health of the company, judicious risk management, and consistent performance record in the NBFC space.
Leadership Views:
A Muthoot Capital Services spokesperson said,
This issue of commercial paper reflects our forward-looking approach to liquidity management and places us well to seize emerging opportunities in India's retail finance business."
Outlook:
With new funds in hand, Muthoot Capital Services Ltd will further accelerate lending operations and deliver value to customers and stakeholders in FY2025-26.
Source: Company announcement, stock exchange filings, April 17, 2025.