Muthoot FinCorp Opens First Tranche of Secured NCDs To Raise Up To ₹600 Crore

Muthoot FinCorp, has opened its first tranche of secured, redeemable non‑convertible debentures for public subscription. The issue is available for investment from February 03 to February 16 as part of the company’s wider fund‑raising programme.

The tranche aims to mobilise up to ₹600 crore within an approved shelf limit of ₹3,000 crore. The company stated that proceeds will support lending activities, repayment of existing borrowings and general corporate requirements.

Details Of the NCD Issue Structure

The NCDs are being issued at a face value of ₹1,000 per debenture. The tranche carries a base size of ₹200 crore, with an additional green shoe option of ₹400 crore that takes the total mobilisable amount to ₹600 crore.

Muthoot FinCorp noted that the structure is aligned with its medium‑term funding strategy across multiple business segments. The company also reiterated that allotment will remain subject to the regulatory framework under SEBI’s Non‑Convertible Securities Regulations, 2021.

Credit Ratings and Listing Plans

The NCDs have received a Crisil AA‑/Positive rating from CRISIL Ratings and a BWR AA/Stable rating from Brickwork Ratings. These ratings reflect what the agencies describe as a high degree of safety regarding timely servicing of debt obligations.

The securities are proposed to be listed on the debt segment of the BSE to provide secondary market accessibility. Listing will allow investors the option to trade the instruments prior to maturity, subject to market liquidity.

Application Mechanism for Retail Investors

Retail applicants using intermediaries such as brokers, depositories or registrars must complete applications via UPI for amounts up to ₹5 lakh. Other payment mechanisms continue to be available through registered banks and recognised stock exchange platforms.

These measures follow standardised norms for public debt issuance in the securities market. The company stated that the application process is structured to promote wider retail participation.

Company Background and Business Presence

Muthoot FinCorp is a major NBFC with over 3,700 branches operating across India. The company primarily caters to semi‑urban and rural regions through its gold loan portfolio and allied financial products.

It forms part of the 139‑year‑old Muthoot Pappachan Group, which has diversified business interests across financial services, hospitality, real estate and technology sectors. The group also operates in precious metals and alternate energy domains as part of its broader business ecosystem.

Read More: India’s 10 Year Bond Yields Touch 1-Year High After Record FY27 Borrowing.

Conclusion

The first tranche of Muthoot FinCorp’s secured NCDs offers investors a range of yield and tenure options backed by established credit ratings. The fund‑raising initiative supports the company’s plans to strengthen lending operations and manage existing liabilities. Listing on the BSE is expected to enhance liquidity for subscribers once the issue closes. The company’s wide branch network and diversified business base continue to support its presence in India’s NBFC sector.

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.

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