Muthoot Capital Raises Rs 100 Crore Through NCDs
By Ankur Chandra | Updated at: Oct 6, 2025 07:07 PM IST
Mumbai, 8 July 2025: Muthoot Capital Services Ltd (BSE: 511766) has successfully completed the private placement of Non-Convertible Debentures (NCDs) worth ₹100 crore, reinforcing its financial strategy through a secured, high-yield debt instrument. The allotment, made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlights the company’s efforts to optimise its funding mix while offering investors a stable return opportunity.
High-Yield Monthly Payout Makes NCDs Attractive for Fixed-Income Investors
Muthoot Capital’s Debenture Issue and Allotment Committee approved the issuance of 10,000 secured NCDs in a meeting held today. Each NCD carries a face value of ₹1,00,000, offering an annualised coupon of 10.35% with monthly interest payouts—making it a compelling option for income-seeking investors.
Key Transaction Details
| Particulars | Details |
|---|---|
| Total NCDs Issued | 10,000 |
| Face Value per NCD | ₹1,00,000 |
| Total Issue Size | ₹100 crore |
| Coupon Rate | 10.35% per annum |
| Coupon Frequency | Monthly |
| Principal Repayment | Quarterly |
| Tenure | 20 months, 26 days |
| Deemed Date of Allotment | July 8, 2025 |
| Maturity Date | April 3, 2027 |
| Listing Platform | BSE Limited |
BSE Listing Enhances Transparency and Liquidity for NCD Holders
The listed nature of the debentures on BSE Limited ensures greater market visibility and potential liquidity for investors. The move also strengthens the company’s reputation as a transparent and regulation-compliant NBFC in the capital market.
Secured Against Receivables: Strong Credit Backing Reinforces Investor Confidence
To safeguard investor interests, the NCDs are backed by a first-ranking pari-passu charge on the company’s receivables, including its entire loan book and current assets. As part of the agreement with the debenture trustee, the pledged receivables must maintain a minimum security cover of 1.2 times the outstanding debenture amount—an assurance that underscores the company’s asset-backed discipline.
Regulatory Clarity and No Defaults Reaffirm Muthoot Capital’s Strong Compliance Record
The company confirmed there has been no delay or default in the payment of either principal or interest on its instruments. Moreover, no adverse remarks were reported in relation to the issuance. The allotment remains fully compliant with SEBI’s Regulation 30 under LODR norms, reflecting Muthoot Capital’s commitment to regulatory integrity.
Backed by a Trusted Legacy in Retail Finance and Tier 2-3 Penetration
Muthoot Capital Services Ltd, headquartered in Kochi, is a part of the Muthoot Pappachan Group and holds a Category-B NBFC registration from the Reserve Bank of India. With a strong presence in Tier 2 and Tier 3 cities, the company focuses on retail financing—including two-wheeler loans, used car finance, and loans for small businesses—catering to underserved markets with structured credit solutions.
A Sign of Robust Demand for Stable Returns in Today’s Debt Market
The ₹100 crore issuance reflects the growing appetite among investors for high-quality, secured debt instruments offering stable and periodic returns. With a strong receivables base, transparent listing, and regulatory compliance, this move positions Muthoot Capital as a dependable name in the non-banking finance space.
REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/4ca7f6e5-fbaf-423f-8a32-430b12a34cfb.pdf
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