Muthoot Microfin Limited has approved the issuance of secured, rated, and listed non-convertible debentures (NCDs) aggregating up to ₹200 crore through a private placement route. The decision was taken by the company’s Debenture Issue and Allotment Committee on January 20, 2026.

The proposed fund-raising will be carried out in multiple tranches and is aimed at strengthening the company’s funding profile.

First Tranche: ₹50 Crore Issue

In the first tranche, Muthoot Microfin will issue 5,000 secured, rated, listed, redeemable NCDs with a face value of ₹1 lakh each, aggregating ₹50 crore. The debentures will carry a tenure of 24 months, with January 23, 2026, set as the deemed date of allotment and January 23, 2028, as the maturity date.

These NCDs will offer a coupon of 9.70% per annum, payable on a monthly basis, and are proposed to be listed on BSE Ltd.

Second Tranche: Up to ₹100 Crore Across Two Series

The company has also approved the issuance of up to ₹100 crore through 10,000 secured, rated, listed, redeemable, taxable NCDs to be issued in two separate series.

Under Series I, up to 5,000 NCDs of ₹1 lakh each will be issued, aggregating ₹50 crore. These debentures will have a tenure of 24 months and will carry a coupon of 9.85% per annum, payable monthly. The deemed date of allotment is January 30, 2026, with maturity scheduled for December 16, 2027.

Series II will comprise up to 5,000 NCDs of ₹1 lakh each, also aggregating ₹50 crore. This series will have a longer tenure of 36 months and will offer a coupon of 9.95% per annum, payable monthly. The deemed date of allotment for this series is January 30, 2026, and the maturity date is December 16, 2028.

Both Series I and Series II are proposed to be listed on BSE Ltd.

Security Cover and Regulatory Compliance

All the NCDs will be secured by a first-ranking, exclusive charge equivalent to 1.05 times the issue amount over the company’s receivables, including both present and future receivables, free from any encumbrances.

The company also confirmed that there have been no delays or defaults in servicing interest or principal payments on its existing borrowings. No special rights or privileges are attached to the proposed NCDs.

Cancellation of Earlier Proposed Issuance

Separately, Muthoot Microfin informed the stock exchanges that it has cancelled the second tranche of an earlier NCD issuance announced on November 27, 2025. The cancelled tranche involved 15,000 secured, rated, listed, redeemable, taxable NCDs of ₹1 lakh each, aggregating ₹150 crore, which were to be issued in two series. The company cited unforeseen circumstances for the cancellation and clarified that this tranche will not be issued.

Summary

Muthoot Microfin has approved the issuance of secured, rated, and listed NCDs worth up to ₹200 crore through private placement, to be rolled out in multiple tranches with tenures ranging from 24 to 36 months. The debentures will offer coupons of up to 9.95% and be secured against the company’s receivables. The company has also cancelled a previously proposed ₹150 crore NCD tranche announced in November 2025.

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