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What is the story about?
Muthoot Microfin has announced a ₹450-crore capital raise through a private placement of secured, rated, listed redeemable non-convertible debentures (NCDs). The NCDs will carry coupon rates ranging from 9.70% to 9.95% per annum.
The company will issue the NCDs in two phases of ₹225 crore each in December 2025 and January 2026, spread across six tranches of ₹75 crore. The instruments are rated CRISIL A+/Positive, indicating adequate safety and low credit risk.
The NCDs will be offered in denominations of ₹10,000 and ₹1,00,000 with 24-month and 36-month tenures. Interest will be paid monthly. The issuance is secured by an exclusive first-ranking charge on the company’s receivables with a 1.05x security cover backed by present and future unencumbered assets.
Muthoot Microfin said the proceeds will be used for onward lending, working capital requirements, debt repayment or refinancing, and general corporate purposes. The capital raise is expected to support its medium-term funding needs and enhance lending capacity as the company expands its microfinance portfolio across India.
The NCDs will be listed on the BSE in December 2025 and January 2026, providing liquidity to investors. KFin Technologies will act as registrar. Interest payments will be subject to tax deducted at source under Section 193 of the Income Tax Act.
Founded as part of the Muthoot Pappachan Group, Muthoot Microfin is one of India’s larger listed microfinance institutions, serving 33.6 lakh active customers across 21 states as of 30 September 2025.
The company will issue the NCDs in two phases of ₹225 crore each in December 2025 and January 2026, spread across six tranches of ₹75 crore. The instruments are rated CRISIL A+/Positive, indicating adequate safety and low credit risk.
The NCDs will be offered in denominations of ₹10,000 and ₹1,00,000 with 24-month and 36-month tenures. Interest will be paid monthly. The issuance is secured by an exclusive first-ranking charge on the company’s receivables with a 1.05x security cover backed by present and future unencumbered assets.
Muthoot Microfin said the proceeds will be used for onward lending, working capital requirements, debt repayment or refinancing, and general corporate purposes. The capital raise is expected to support its medium-term funding needs and enhance lending capacity as the company expands its microfinance portfolio across India.
The NCDs will be listed on the BSE in December 2025 and January 2026, providing liquidity to investors. KFin Technologies will act as registrar. Interest payments will be subject to tax deducted at source under Section 193 of the Income Tax Act.
Founded as part of the Muthoot Pappachan Group, Muthoot Microfin is one of India’s larger listed microfinance institutions, serving 33.6 lakh active customers across 21 states as of 30 September 2025.
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