Muthoot Microfin Approves ₹150 Crore NCD Issuance; Cancels ₹150 Crore Tranche
Muthoot Microfin approved issuance of ₹150 crore in NCDs via private placement. The issuance includes two series: ₹50 crore of 24-month NCDs at 9.70% and ₹100 crore of 36-month NCDs at 9.95%. The company also cancelled a previously planned ₹150 crore NCD tranche due to unforeseen circumstances.
The issuance of NCDs will impact the company's capital structure and debt levels. The total amount of ₹150 crore is significant for a microfinance institution, affecting its borrowing costs and financial leverage. The cancellation of another tranche might indicate some planning adjustments.
The company is raising debt through NCD issuance, which is a routine financial activity. While the issuance itself is neutral, the cancellation of a portion of the planned issuance due to unforeseen circumstances does not introduce a strong positive or negative sentiment.
Muthoot Microfin Limited announced the outcome of its Debenture Issue and Allotment Committee meeting held on January 20, 2026. The committee approved the issuance of Non-Convertible Debentures (NCDs) on a private placement basis.
The approved issuance includes 5,000 Secured, Rated, Listed, Redeemable NCDs with a face value of ₹1,00,000 each, for an aggregate nominal value of ₹50 crore. Additionally, the company approved the issuance of 10,000 Secured, Rated, Listed, Redeemable, Taxable NCDs, also with a face value of ₹1,00,000 each, for an aggregate nominal value of ₹100 crore. These are structured into two series, each comprising up to 5,000 debentures with an aggregate nominal value of up to ₹50 crore.
In a separate development, the company announced the cancellation of the second tranche of a proposed issuance, which was previously intimated on November 27, 2025. This cancelled tranche comprised 15,000 secured, rated, listed, redeemable, taxable NCDs, aggregating up to ₹150 crore, proposed to be issued in two series. This tranche will not be issued due to unforeseen circumstances.
The first series of NCDs (Series I) will have a tenure of 24 months, with a deemed date of allotment on January 23, 2026, and maturity on January 23, 2028. These NCDs will carry a coupon rate of 9.70% per annum, payable monthly. The second series (Series II) will have a tenure of 36 months, with a deemed date of allotment on January 30, 2026, and maturity on December 16, 2028. These NCDs will carry a coupon rate of 9.95% per annum, payable monthly. All NCDs are secured by a first-ranking charge of 1.05x over the company's receivables.
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Muthoot Microfin Limited filed this with the NSE as a statutory disclosure, categorised under debt fundraising. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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