Muthoot Microfin Limited announced a INR 4,500 million capital raise through a private placement of secured, rated, listed redeemable non-convertible debentures (NCDs) offering coupon rates between 9.70% and 9.95% per annum. The proceeds will support onward lending, working capital needs, debt repayment/refinancing, and general corporate purposes. The issuance will be undertaken in two phases, with INR 2,250 million each to be raised in December 2025 and January 2026 across six tranches of INR 750 million each.
The NCDs are rated "CRISIL A+/Positive," reflecting adequate safety, low credit risk, and potential for a rating upgrade. Available in denominations of INR 10,000 and INR 100,000, the instruments carry 24-month and 36-month tenures with monthly interest payouts, providing predictable cash flows for institutional investors. The NCDs are secured by an exclusive first-ranking charge over the company's receivables with a 1.05x security cover, backed by present and future unencumbered assets.
This issuance is expected to strengthen Muthoot Microfin's medium-term capital base and enhance its lending capacity in the microfinance sector, supporting the company's pan-India expansion while reinforcing a more resilient financial foundation. As part of its forward-looking strategy, the company plans to roll out new initiatives, including expanding participation in capital market funding to accelerate growth in a competitive environment. The NCDs will be listed on BSE in December 2025 and January 2026, enabling liquidity for investors, with KFin Technologies Limited serving as registrar, and interest payments subject to TDS under Section 193 of the Income Tax Act.
The issuance underscores Muthoot Microfin's commitment to strengthening its balance sheet while advancing financial inclusion nationwide.
