Muthoot Microfin approves ₹200 crore secured NCD issuance, cancels ₹150 crore second tranche

Muthoot Microfin Ltd on Tuesday (January 20) approved the issuance of secured, rated, listed, redeemable non-convertible debentures (NCDs) aggregating up to ₹200 crore on a private placement basis, following a meeting of its Debenture Issue and Allotment Committee.

The company approved the issuance of 5,000 secured, rated, listed, redeemable NCDs with a face value of ₹1 lakh each, aggregating to ₹50 crore. These debentures carry a tenure of 24 months, with a deemed date of allotment of January 23, 2026, and a maturity date of January 23, 2028. The NCDs offer a coupon of 9.70% per annum, payable on a monthly basis, and will be listed on BSE Ltd.

In addition, the committee approved the issuance of up to 10,000 secured, rated, listed, redeemable, taxable NCDs aggregating up to ₹100 crore, to be issued in two equal series. Series I comprises up to 5,000 NCDs of ₹1 lakh each, aggregating ₹50 crore, with a tenure of 24 months. These debentures carry a coupon of 9.85% per annum, payable monthly, with a deemed date of allotment of January 30, 2026, and maturity on December 16, 2027.

Also Read: 'The bad days for microfinance are behind us,’ says Muthoot Microfin CEO

Series II also comprises up to 5,000 NCDs of ₹1 lakh each, aggregating ₹50 crore, with a longer tenure of 36 months. These debentures offer a coupon of 9.95% per annum, payable monthly, with a deemed date of allotment of January 30, 2026, and maturity on December 16, 2028. Both Series I and Series II debentures are proposed to be listed on BSE Limited.

All the NCDs will be secured by a first-ranking and exclusive charge of 1.05 times over the company’s receivables, including present and future receivables, which are free from encumbrances. The company confirmed that there has been no delay or default in the payment of interest or principal on any of its securities, and no special rights or privileges are attached to the instruments.

Separately, Muthoot Microfin informed the exchanges that the second tranche of a previously proposed issuance, intimated on November 27, 2025, has been cancelled due to unforeseen circumstances. The cancelled tranche comprised 15,000 secured, rated, listed, redeemable, taxable NCDs of face value ₹1 lakh each, aggregating up to ₹150 crore, proposed to be issued in two series. Accordingly, this tranche will not be issued.

Also Read: Muthoot Microfin approves ₹450-crore private placement of NCDs

Shares of Muthoot Microfin Ltd ended at ₹177.80, down by ₹3.10, or 1.71%, on the BSE.