Muthoot Capital Services rises 6% on plans to raise ₹125 crore via NCDs

Muthoot Capital Services share price 5.6 per cent in trade on Thursday on BSE, logging an intraday high at ₹354.85 per share; check details

Muthoot Capital Services share price gained 5.6 per cent in trade on Thursday on BSE, logging an intraday high at ₹354.85 per share. At 12:07 PM, Muthoot Capital Services shares were up 3.6 per cent at ₹348.1 per share on the BSE. In comparison, the BSE Sensex was down 0.42 per cent at 83,187.48. The company's market capitalisation stood at ₹571.14 crore. 

What led to northward movement in Muthoot Capital Services shares?

The buying on the counter came after the board approved the issuance and allotment of Non-Convertible Debentures (NCDs) up to ₹125 crore, on private placement basis. 

 

The company proposes to issue 12,500 NCDs of face value ₹1,00,000 each, aggregating up to ₹ 125 crore. The tenure of the NCDs is 24 months. 

 

The coupon rate, the interest paid to investors, for the NCDs is fixed at 9.5 per cent per annum. This interest will be paid out every month.

 

In June 2025 too, the company had issued NCDs of up to ₹100 crore, on private placement basis.

 

10,000 NCDs of face value ₹ 1,00,000 each, aggregating up to ₹100 crore were issued. 

 

The tenure of the issue was 21 months and the coupon rate was at 10.35 per cent per annum with monthly coupon frequency and quarterly principal payment. 

What are NCDs? 

NCDs are fixed-income instruments issued by companies to raise capital from investors. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company. Investors receive a fixed rate of interest—known as the coupon—at regular intervals (monthly, quarterly, or annually), and the principal amount is repaid at the end of the tenure. NCDs can be either secured, backed by company assets, or unsecured, depending on the structure. 

 

They generally offer higher returns than bank fixed deposits and are popular among those seeking predictable income streams. However, they do carry credit risk (if the issuer defaults), liquidity risk, and are subject to taxation as per the investor's income tax slab.

About Muthoot Capital Services

Muthoot Capital Services Ltd. promoted by the Muthoot Pappachan Group is a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India. The company's portfolio includes retail finance products such as two wheeler loans, used car loans and investment product in the form of fixed deposits.