Muthoot Microfin Limited is gearing up for a fresh round of fundraising, announcing a ₹450 crore capital raise through secured, rated, listed non-convertible debentures. The company says this move will help strengthen its lending capacity and support its nationwide expansion in the microfinance space.
What’s in This NCD Issue?
Here’s the quick snapshot:
- Total issue size: ₹450 crore
- Structure: Private placement
- Type: Secured, rated, listed, redeemable NCDs
- Coupon range: 9.70% to 9.95% per year
- Tenure: 24 months and 36 months
- Interest: Monthly payouts
- Denominations: ₹10,000 and ₹1,00,000
- Rating: CRISIL A+/Positive (indicating adequate safety and low credit risk)
The NCDs will be issued in two phases – ₹225 crore in December 2025 and another ₹225 crore in January 2026 – spread across six tranches of ₹75 crore each.
How the Funds Will Be Used
According to the company, the raised capital will support:
- Onward lending
- Working capital requirements
- Debt repayment or refinancing
- General corporate purposes
The NCDs will be secured by a first-ranking charge over Muthoot Microfin’s receivables with a 1.05x security cover, supported by present and future unencumbered assets.
Why This Fundraise Matters
This capital infusion comes at a time when the microfinance sector is seeing rising demand from rural and semi-urban borrowers. Strengthening the balance sheet helps Muthoot Microfin:
- Expand its lending portfolio
- Improve liquidity
- Enhance its ability to compete in a crowded MFI landscape
- Boost its medium-term growth plans
- Increase participation in capital market funding
The company noted that the NCDs will be listed on BSE, giving investors liquidity. KFin Technologies will act as the registrar, and interest payments will be subject to TDS under Section 193.
About Muthoot Microfin
Part of the Muthoot Pappachan Group (Muthoot Blue), Muthoot Microfin is one of India’s leading listed microfinance institutions. The company focuses on empowering women entrepreneurs and promoting inclusive growth through small-ticket loans.
As of 30 September 2025, the company has:
- 33.6 lakh active customers
- 1,718 branches
- Presence across 21 states and 392 districts
- A Gross Loan Portfolio of ₹12,558.8 crore
Muthoot Microfin is also a constituent of the S&P BSE Financial Services Index.
Leave a Reply