Muthoot Microfin has successfully raised ₹250 crore through the allotment of listed, rated, secured and redeemable Non-Convertible Debentures (NCDs) on a private placement basis. According to reports from CNBC TV18, the NCDs will be listed on BSE, providing public market access for these securities. The Debenture Issue and Allotment Committee approved the allotment on September 15, 2026, following Board approval dated June 30, 2026.
As part of this issuance, the company has allotted 2,50,000 NCDs of ₹10,000 each, aggregating to ₹250 crore with a tenure of 24 months and maturity date of September 2028. As reported by CNBC TV18, the NCDs carry a coupon rate of 9.25% per annum, payable monthly, providing regular interest income to investors. The securities are secured by a first-ranking, exclusive charge of 1.0x over the company's present and future receivables, which are free from encumbrances.
This latest fund raise forms part of Muthoot Microfin's continued strategy to strengthen its funding profile, diversify its liability mix, and optimise its overall cost of borrowing. According to CNBC TV18, CEO Sadaf Sayeed highlighted that the company's cost of funds fell by 75 basis points in FY26, with the recent upgrade in the company's credit rating to CRISIL AA-/Stable further improving its ability to raise funds at competitive rates. Sayeed emphasized that this initiative will support the company's focus on strengthening margins while continuing to grow responsibly and serve more customers across its markets. As reported by CNBC TV18, Sayeed stated that the ₹250 crore fund raise is an important step towards strengthening our funding profile and maintaining access to diversified sources of capital.
The company's latest financial results demonstrate strong performance with net profit surging to ₹81.3 crore in Q1 FY27 from ₹6.2 crore in Q1 FY26, as reported by CNBC TV18. Total income for the period under review was ₹670.6 crore, up 20% YoY. The company's gross loan portfolio stood at ₹14,457.2 crore as of June 30, 2026, serving 3.25 million active customers across 1,671 branches in 21 states and 392 districts.
Despite the successful fund raising, Muthoot Microfin's stock price declined 1.04% to currently trade at ₹194.20 on the BSE, as reported by CNBC TV18. The company is part of the Muthoot Pappachan Group and focuses on microfinance loans, including income-generating loans for women running small businesses.
