Mumbai: Muthoot Microfin Limited has announced a ₹450 crore capital raise through a private placement of secured, rated, and listed non-convertible debentures (NCDs), offering coupon rates between 9.70% and 9.95% per annum.
The move aligns with Muthoot Microfin’s plans to support onward lending, strengthen working capital, refinance existing debt, and meet general corporate requirements.
The capital mobilisation by Muthoot Microfin will be executed in two phases, with ₹225 crore to be raised in December 2025 and another ₹225 crore in January 2026. The issuance will be spread across six tranches of ₹75 crore each.
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The NCDs have been rated “CRISIL A+/Positive”, reflecting adequate credit safety, low risk, and the potential for a future upgrade.
Muthoot Microfin NCD Features and Security Cover
Available in denominations of ₹10,000 and ₹1,00,000, the Muthoot Microfin NCDs offer tenures of 24 and 36 months with monthly interest payouts.
They are secured by an exclusive first-ranking charge over the company’s receivables, backed by a 1.05x security cover supported by present and future unencumbered assets.
Strengthening Capital Base for Sector Expansion
The issuance is expected to strengthen Muthoot Microfin’s medium-term capital base and enhance its lending capacity across the microfinance sector.
The company aims to expand its nationwide footprint while laying the groundwork for a more resilient financial structure. As part of its forward-looking approach, Muthoot Microfin is also accelerating its participation in capital market funding channels to support sustained growth.
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NCD Listing and Compliance Details
The NCDs will be listed on the BSE in December 2025 and January 2026, ensuring liquidity for investors. KFin Technologies Limited will serve as the registrar for the issue. Interest payouts will be subject to TDS in accordance with Section 193 of the Income Tax Act.
The issuance highlights Muthoot Microfin’s commitment to strengthening its balance sheet while advancing financial inclusion across India.
