Muthoot FinCorp announces NCD issue to raise up to ₹60,000 lakh

Muthoot FinCorp has announced Tranche IV of its public issue of secured, redeemable non-convertible debentures (NCDs), with the subscription opening on June 19 and closing on July 3, subject to early closure as permitted under regulatory approvals.

The issue, part of the company’s shelf limit programme, has a total size of up to ₹60,000 lakh, comprising a base issue of ₹20,000 lakh and a green shoe option of ₹40,000 lakh. The NCDs carry a face value of ₹1,000 each.

The proceeds are proposed to be used for onward lending activities, financing operations, and repayment or prepayment of existing borrowings, along with general corporate purposes.

The instruments offer effective annual yields in the range of 8.84% to 9.25%, with tenure options of 24, 36, 60, and 72 months.

The issue is rated “Crisil AA/Stable” by CRISIL Ratings Limited and “BWR AA/Stable” by Brickwork Ratings India Private Limited, indicating a high degree of credit quality for timely servicing of financial obligations.

The NCDs are proposed to be listed on the debt segment of the BSE Limited.

For retail investors, applications up to ₹5 lakh can be made through intermediaries using UPI-based fund blocking with a valid UPI ID. Other application routes include SCSBs and stock exchange platforms.

Shaji Varghese, CEO of Muthoot FinCorp, said the issue provides investors access to a structured borrowing instrument and will be distributed through the company’s branch network and digital platforms.

The issuance is being carried out in accordance with SEBI regulations governing non-convertible securities.