Muthoot FinCorp launches NCD issue to raise up to ₹600 crore

Muthoot FinCorp, the flagship company of the Muthoot Pappachan Group, has opened its first tranche of secured, redeemable non-convertible debentures (NCDs) for public subscription from February 3 to February 16. The company aims to raise up to ₹600 crore under this tranche, within its approved shelf limit of ₹3,000 crore.

The NCDs have a face value of ₹1,000 each and are being issued as part of the company’s fund-raising strategy to support lending operations, repay existing debt obligations, and meet general corporate requirements. The issue has a base size of ₹200 crore, with an additional green shoe option of ₹400 crore, taking the total potential mobilization to ₹600 crore.

According to the company, the instruments offer effective annual yields ranging between 8.70% and 9.10% across tenures of 24, 36, 60, and 72 months. The final allotment remains subject to regulatory provisions under SEBI’s Non-Convertible Securities Regulations, 2021.

The NCDs have received credit ratings of Crisil AA-/Positive from CRISIL Ratings and BWR AA/Stable from Brickwork Ratings, indicating what the agencies describe as a high degree of safety regarding timely debt servicing. The securities are proposed to be listed on the debt segment of the BSE.

Retail investors applying through intermediaries such as brokers, depositories, or registrars must use UPI for applications up to ₹5 lakh, while other payment routes remain available through banks and stock exchange platforms.

Muthoot FinCorp is a major non-banking financial company (NBFC) with over 3,700 branches across India, primarily serving semi-urban and rural markets with gold loans and other financial products. It operates under the 139-year-old Muthoot Pappachan Group, which has interests in financial services, hospitality, real estate, IT, precious metals, and alternate energy.