Muthoot FinCorp Launches ₹600 Crore NCD Issue to Fuel Growth

Muthoot FinCorp, the flagship company of the Muthoot Pappachan Group, is offering a ₹600 crore secured, redeemable non-convertible debenture (NCD) issue to retail investors. The offering, which opened for subscription on March 13, 2026, and will close on March 23, 2026, aims to support the company’s lending activities, repay existing debt, and address general corporate needs. Kotak Neo reports the issue is part of a larger shelf prospectus program.

Investment Details

The NCDs have a face value of ₹1,000 each and offer effective annual yields ranging from 8.70% to 9.10%. Investors can choose from tenures of 24, 36, 60, and 72 months. The base issue size is ₹200 crore, with a greenshoe option allowing the company to retain oversubscription up to ₹400 crore, potentially raising the total to ₹600 crore. The Economic Times details these yield and tenure options.

Credit Ratings and Security

The NCDs have received favorable credit ratings, indicating a high degree of safety for investors. CRISIL Ratings has assigned a rating of ‘AA-/positive’, while Brickwork Ratings India has given a rating of ‘AA/stable’. CNBC TV18 highlights these ratings as a sign of the company’s ability to meet its financial obligations.

Company Performance and Growth

Muthoot FinCorp’s assets under management (AUM) reached ₹48,122 crore at the end of December, representing a 63% increase year-over-year, driven primarily by strong demand for gold loans. The Economic Times reported this significant growth in AUM.

Subscription Details

The NCDs are proposed to be listed on the debt segment of the Bombay Stock Exchange (BSE), allowing investors to trade them after listing. Retail investors can apply through intermediaries like brokers, depositories, or registrars, utilizing UPI for applications up to ₹5 lakh. Other payment options are available through banks and stock exchange platforms. CNBC TV18 provides details on the subscription process.

Key Takeaways

• Muthoot FinCorp is raising up to ₹600 crore through an NCD issue.
• Yields range from 8.70% to 9.10% with tenures of 24, 36, 60, and 72 months.
• The NCDs are rated ‘AA-/positive’ by CRISIL and ‘AA/stable’ by Brickwork Ratings.
• Funds will be used for lending, debt repayment, and corporate needs.
• The issue is open for subscription from March 13, 2026, to March 23, 2026.