Muthoot Microfin approves ₹450-crore private placement of NCDs

Pappachan Group's micro-lending arm, Muthoot Microfin Ltd, on Thursday (November 27), announced that its Debenture Issue and Allotment Committee approved the issuance of non-convertible debentures (NCDs)

on a private placement basis.

The issuance includes 1,50,000 listed, rated, senior, secured, transferable, redeemable NCDs of face value ₹10,000 each, totalling ₹150 crore. These are structured in two series of 75,000 NCDs each. Series A has a tenure of 24 months with allotment on December 3, 2025, maturing on December 3, 2027, offering a coupon of 9.70% per annum payable monthly.

Series B has a tenure of 23 months, allotment on January 3, 2026, maturing on December 3, 2027, with the same coupon rate and schedule. The NCDs will be secured by a first-ranking exclusive charge of 1.05x on receivables.

Also Read: Muthoot Microfin to raise $15 million via bonds, issue ₹150-crore NCDs

The issuance also includes 30,000 secured, rated, listed, redeemable, taxable NCDs of face value ₹1,00,000 each, totalling ₹300 crore, issued in two tranches. Tranche I and II are further split into a series of ₹75 crore each.

Series I has a tenure of 24 months from December 16, 2025, to December 16, 2027, and Series II has a tenure of 36 months from December 16, 2025, to December 16, 2028, offering coupons of 9.85% and 9.95% per annum, payable monthly.

These debentures are secured via hypothecation over specific asset portfolios of receivables with a minimum security cover of 1.05x. All NCDs will be listed on BSE Limited.

Shares of Muthoot Microfin Ltd ended at ₹196, up by ₹2.60, or 1.34%, on the BSE today, November 27.

Also Read: Tamil Nadu's new money lending bill unlikely to impact regulated MFIs: Muthoot Microfin CEO