Muthoot Capital Services to Raise ₹500 Million via Non-Convertible Debentures

Image Source: Muthoot Finance

Muthoot Capital Services Ltd. has approved issuing non-convertible debentures (NCDs) valued at ₹500 million, a consolidation of its fund-raising strategy to meet business expansion challenges. The Debenture Issue and Allotment Committee okayed the move in its recent board meeting, with the issue to be effected on a private placement basis.

Key Highlights:

₹500 million NCD issue sanctioned, bolstering capital buffers to support future growth.
Rated, listed, senior, secured, redeemable, and taxable debentures, which give confidence to the investors.
Total issue value: 5,000 NCDs of face value of ₹1,00,000 each.
Tenure: 36 months, effective date of allotment February 24, 2025, and maturity on February 24, 2028.
Coupon rate of 10% per year, paid every year.
Principal payment frequency: Bullet repayment at maturity, providing disciplined returns to investors.

This strategic funding injection puts Muthoot Capital Services in a position of long-term financial strength, reiterating its growth focus and investor confidence.

Source: MarketScreener | Economic Times | Business Standard