Muthoot Microfin Approves NCD Issuance of Up to ₹200 Crore

On Tuesday, January 20, 2026, Muthoot Microfin Ltd announced that its Debenture Issue and Allotment Committee approved the issuance of secured, rated, listed, redeemable non-convertible debentures (NCDs) aggregating up to ₹200 crore through a private placement.

First Tranche: ₹50 Crore NCDs

The company will issue 5,000 secured, rated, listed, redeemable NCDs with a face value of ₹1 lakh each, totaling ₹50 crore. Key details include:

• Tenure: 24 months
• Deemed Date of Allotment: January 23, 2026
• Maturity Date: January 23, 2028
• Coupon: 9.70% per annum, payable monthly
• Listing: Proposed on BSE Ltd

Second Tranche: Up to ₹100 Crore in Two Series

The committee also approved the issuance of up to 10,000 secured, rated, listed, redeemable, taxable NCDs, aggregating ₹100 crore, to be issued in two equal series:

Series I

• Number of NCDs: Up to 5,000
• Face Value: ₹1 lakh each (Total ₹50 crore)
• Tenure: 24 months
• Coupon: 9.85% per annum, payable monthly
• Deemed Allotment Date: January 30, 2026
• Maturity Date: December 16, 2027

Series II

• Number of NCDs: Up to 5,000
• Face Value: ₹1 lakh each (Total ₹50 crore)
• Tenure: 36 months
• Coupon: 9.95% per annum, payable monthly
• Deemed Allotment Date: January 30, 2026
• Maturity Date: December 16, 2028

Both Series I and II are proposed to be listed on BSE Ltd.

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Security and Compliance

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

Cancellation of Previous Tranche

Muthoot Microfin also informed the exchanges that the second tranche of a previously proposed NCD issuance, announced on November 27, 2025, has been cancelled due to unforeseen circumstances. The cancelled tranche comprised 15,000 secured, rated, listed, redeemable, taxable NCDs of ₹1 lakh each, aggregating ₹150 crore, intended to be issued in two series. This tranche will no longer be issued.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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