Muthoot Microfin to raise ₹450 crores via debentures

Muthoot Microfin Limited (MML) is set to raise ₹450 crores through a private placement of secured, rated, listed non-convertible debentures (NCDs) with coupon rates ranging from 9.70% to 9.95% per annum. The funds will be used for onward lending, working capital, debt repayment/refinancing, and general corporate purposes. This issuance reflects the company's commitment to strengthening its balance sheet and advancing financial inclusion across India.

The capital raise will occur in two phases, with ₹225 crores each in December 2025 and January 2026, structured across six tranches of ₹75 crores each. The NCDs are rated "CRISIL A+/Positive," indicating adequate safety and low credit risk. Available in denominations of ₹10,000 and ₹1,00,000, these instruments will have 24-month and 36-month tenures with monthly interest pay-outs, secured by a first-ranking charge over the company's receivables with a 1.05x security cover.

The NCDs will be listed on BSE in December 2025 and January 2026, enhancing liquidity for investors. This strategic move aims to reinforce MML's medium-term capital base, expand its lending capacity in the microfinance sector, and support its pan-India growth initiatives.