Muthoot Microfin Raises Rs 450 Crore Via NCD Issue for Lending

Muthoot Microfin Limited, among India’s leading Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), today 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.

This issuance is expected to strengthen Muthoot Microfin’s medium-term capital base and enhance its lending capacity in the microfinance sector. The funds will support the Company’s pan-India expansion, while reinforcing its focus on building a more resilient financial foundation. As part of its forward-looking strategy, the Company is also set to roll out new initiatives, including expanding 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, enabling liquidity for investors. KFin Technologies Limited will serve 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.