Muthoot FinCorp Launches ₹600 Crore NCD Issue with Yields up to 9.25%

Muthoot FinCorp has announced the launch of the third tranche of its secured, redeemable non-convertible debentures (NCDs). The issue opened on April 24, 2026, and is scheduled to close on May 8, 2026, with the possibility of early closure depending on investor demand.

The company aims to raise up to ₹600 crore under this tranche, which is part of its overall approved shelf limit of ₹3,000 crore. The issue comprises a base size of ₹200 crore along with a green shoe option of ₹400 crore.

Key Features of the NCD Issue

The NCDs have a face value of ₹1,000 each and offer attractive yields ranging between 8.84% and 9.25% per annum. Investors can choose from multiple tenure options of 24, 36, 60, and 72 months, catering to different investment horizons.

The instruments have received credit ratings of “AA-/Positive” from CRISIL Ratings Limited and “AA/Stable” from Brickwork Ratings India Private Limited. These ratings indicate a high level of safety regarding timely repayment of interest and principal.

Utilisation of Funds

According to the company, the funds raised through this NCD issue will be used for various purposes, including onward lending, financing activities, repayment or prepayment of existing borrowings, and general corporate needs. This aligns with the company’s strategy to strengthen its lending operations and balance sheet.

Listing and Application Process

The NCDs are proposed to be listed on the debt market segment of the BSE, providing liquidity to investors.

Retail investors applying through intermediaries for amounts up to ₹5 lakh are required to use the UPI mechanism for fund blocking, along with a valid UPI ID. Applications can also be made via self-certified syndicate banks and stock exchange platforms.

Conclusion

Muthoot FinCorp’s latest NCD issue offers investors an opportunity to earn relatively higher fixed returns compared to traditional instruments, supported by strong credit ratings. With flexible tenures and a clear utilisation plan, the issue may appeal to investors seeking stable income. However, investors should assess their risk appetite and investment goals before subscribing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private 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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.