Muthoot Capital To Raise Rs 50 Crore Through NCDs, At 10% Per Annum Coupon Rate
By Ankur Chandra | Updated at: Jun 11, 2025 06:27 PM IST
Mumbai, 11 June 2025: Muthoot Capital Services Ltd (BSE: 511766, NSE: MUTHOOTCAP) has given the green light for raising ₹50 crore through the issuance of Non-Convertible Debentures (NCDs) via the private placement route, as disclosed in a regulatory filing made earlier today.
As of 1:36 p.m. IST on June 11, shares of Muthoot Capital Services Ltd were trading at ₹313.65, reflecting a decline of ₹2.80 or 0.88% for the day. The stock opened at ₹316.50, reached an intraday high of ₹319.05, and touched a low of ₹312.50. The company’s market capitalisation stands at ₹515.88 crore, with a P/E ratio of 11.28. The stock has recorded a 52-week high of ₹405.75 and a 52-week low of ₹234.01. No dividend yield or recent quarterly dividend payout has been declared.
NCD Issuance Approved by Board Committee
The approval came during a meeting of the company’s Debenture Issue and Allotment Committee held on June 11, 2025. The proposed NCDs will be rated, listed, senior, secured, redeemable, and taxable instruments, each having a face value of ₹1 lakh.
Key Terms of the NCD Offer
| Instrument Details | Information |
|---|---|
| Type of Securities | Rated, Listed, Secured, Redeemable NCDs |
| Mode of Issuance | Private Placement |
| Total Issue Size | ₹50 crore |
| Number of NCDs | 5,000 |
| Face Value per NCD | ₹1,00,000 |
| Coupon Rate | 10% per annum |
| Coupon Frequency | Monthly |
| Tenure | 24 months |
| Allotment Date | June 17, 2025 |
| Maturity Date | June 17, 2027 |
| Listing | BSE Limited |
| Security Cover | 1.15x hypothecation on receivables |
Security Structure
These NCDs will be protected by a first pari passu charge over the company’s receivables and loan assets, assigned in favour of the Debenture Trustee. The security cover is maintained at 1.15 times the outstanding principal amount along with accrued dues, reinforcing investor confidence.
Regulatory Compliance
The announcement adheres to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the stipulations of the SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155, dated November 11, 2024. The company has confirmed that there are no instances of payment default or delays, nor have there been any negative observations from rating agencies.
Company Overview
Muthoot Capital Services Ltd is a non-banking financial company (NBFC) under the Muthoot Pappachan Group, with its headquarters in Kochi, Kerala. The firm primarily focuses on two-wheeler financing and other retail credit solutions, catering to customers across India. It is publicly listed on both the BSE and NSE.
Strategic Implication
This ₹50 crore NCD issue represents a strategic initiative by Muthoot Capital to diversify its funding base and strengthen its capital resources, aligning with its long-term growth and lending plans
REF:https://nsearchives.nseindia.com/corporate/MUTHOOTCAPS_11062025114539_SE_Intimation_Outcome.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
