Muthoot Microfin raises Rs 450 via private placement of NCDs

Muthoot Microfin 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 will support onward lending, working capital needs, debt repayment/refinancing, and general corporate purposes.

The issuance will be undertaken 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 are 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 carry 24-month and 36 month tenures with monthly interest pay-outs, providing predictable cash flows for institutional investors. The NCDs 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.

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