The microfinance institution has allotted 2.5 lakh NCDs with a face value of ₹10,000 each. The debentures have a tenure of 24 months and carry a coupon rate of 9.25% per annum, payable monthly. The NCDs will be listed on the BSE.
According to the company, the fund raise is aimed at strengthening its funding profile, diversifying its liability mix and optimising borrowing costs.
The NCDs are secured by a first-ranking, exclusive charge over the company’s receivables.
Sadaf Sayeed, CEO, Muthoot Microfin, said the fund raise would help the company access diversified sources of capital and optimise its borrowing costs. He added that the company’s cost of funds declined by 75 basis points in FY26.
Muthoot Microfin also said its credit rating was recently upgraded to CRISIL AA-/Stable.
As of June 30, 2026, the company had 3.25 million active customers across 1,671 branches in 21 states and 392 districts. Its gross loan portfolio stood at ₹14,457.2 crore, according to the company.
