Mumbai: Muthoot Microfin Limited (NSE: MUTHOOTMF, BSE: 544055), among India’s leading Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFI), announced a Rs 450 crore capital raise through a private placement of secured, rated, listed, redeemable non-convertible debentures (NCDs), offering coupon rates between 9.70% and 9.95% per annum. The proceeds from this issuance will be directed towards onward lending, working capital requirements, debt repayment or refinancing, and general corporate purposes. The capital raise will be executed in two phases, with Rs 225 crore each to be raised in December 2025 and January 2026, across six tranches of Rs 75 crore each.
The NCDs have been rated “CRISIL A+/Positive,” reflecting adequate safety, low credit risk, and the potential for a rating upgrade. Available in denominations of Rs 10,000 and Rs 1,00,000, the instruments will carry 24-month and 36-month tenures with monthly interest pay-outs, offering predictable cash flows for institutional investors. They are secured by an exclusive first-ranking charge over the company’s receivables with a 1.05x security cover, backed by present and future unencumbered assets.
This issuance is expected to strengthen Muthoot Microfin’s medium-term capital base and enhance its lending capacity in the microfinance sector. The company highlighted that the funds will support its pan-India expansion while reinforcing its financial foundation. As part of its forward-looking strategy, Muthoot Microfin is also preparing to expand its participation in capital market funding, aimed at accelerating growth in an increasingly competitive environment.
The NCDs will be listed on BSE in December 2025 and January 2026, providing liquidity for investors, with KFin Technologies Limited serving as registrar. Interest payments will be subject to TDS under Section 193 of the Income Tax Act. The issuance underscores Muthoot Microfin’s commitment to strengthening its balance sheet while advancing financial inclusion nationwide.
