Muthoot Microfin Ltd has approved the issuance of secured, rated, listed, redeemable non-convertible debentures (NCDs) worth up to ₹200 crore via private placement. The move aims to diversify funding sources, enhance liquidity, and reinforce investor confidence. The NCDs will carry attractive coupon rates and be listed on BSE.
Muthoot Microfin Ltd, a leading microfinance institution, has announced plans to issue secured, rated, listed, redeemable non-convertible debentures (NCDs) aggregating up to ₹200 crore. The decision was taken by the company’s Debenture Issue and Allotment Committee on January 20, 2026.
The issuance will be carried out in multiple tranches, with the first tranche comprising 5,000 NCDs of ₹1 lakh each, aggregating to ₹50 crore. These debentures will have a 24-month tenure, with allotment on January 23, 2026 and maturity on January 23, 2028. Coupon rates are expected to range between 9.70% and 9.95% per annum, payable monthly.
Key Highlights:
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Total Issue Size: Up to ₹200 crore via private placement.
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First Tranche: ₹50 crore, 24-month tenure, monthly coupon payments.
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Coupon Rates: 9.70%–9.95% annually, attractive for investors seeking steady returns.
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Listing: Proposed on BSE Ltd, ensuring transparency and tradability.
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Strategic Objective: Strengthen funding profile, diversify capital base, and support growth initiatives.
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Cancellation: A previously planned ₹150 crore tranche has been withdrawn.
This issuance reflects Muthoot Microfin’s proactive approach to capital management, positioning it to meet future expansion needs while offering investors a reliable fixed-income opportunity.
Sources: CNBC TV18, Business Standard, Economic Times, ScanX News.