Muthoot Capital Services has successfully allotted 15,000 Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable, Non-Convertible Debentures on a private placement basis. Each NCD carries a face value of ₹1,00,000, resulting in a total allotment of up to ₹150 crore. The allotment, approved by the Debenture Issue and Allotment Committee on September 23, 2026, comprises a base issue size of ₹75 crore that was fully subscribed along with the oversubscription option of ₹75 crore. According to the company's disclosure filed with BSE Limited and National Stock Exchange of India Limited on September 23, 2026, the company has structured these instruments as listed, transferable, and redeemable securities for enhanced marketability.
The NCDs offer a coupon rate of 9.25% per annum, with interest payments scheduled on a quarterly basis and bullet principal repayment at maturity. These securities are secured by a pari passu charge on standard loan receivables and current assets, both present and future, with the Debenture Trustee maintaining a minimum asset coverage ratio of 1.1 times the outstanding value of the debentures until redemption. The instruments carry a credit rating of AA- with a step-up/step-down feature: the coupon rate will increase by 25 basis points for each notch downgrade during the tenor, while decreasing by 25 basis points for each notch upgrade, restoring to the initial 9.25% rate if the AA- rating is regained. In case of default in interest or principal payment exceeding three months, a default interest rate of 2% per annum over the coupon rate will apply for the defaulting period.
The private placement approach allows Muthoot Capital Services to access capital markets without the regulatory requirements of a public issue. The company has positioned these NCDs as senior, secured, and rated instruments, which typically attract higher investor confidence. The debentures are proposed to be listed on the BSE exchange, providing liquidity for investors and enhancing the company's market presence. The structured nature of these instruments as senior, secured, and rated debentures adds to their appeal to institutional and retail investors, with the combination of quarterly coupon payments and BSE listing providing a structured investment vehicle for investors seeking exposure to the financial services sector.
