Muthoot Capital Services Approves ₹150 Crore Non-Convertible Debenture Issue via Private Placement
Muthoot Capital Services Limited has announced the approval of a significant debt issuance, sanctioning the release of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable, Non-Convertible Debentures (NCDs) amounting up to ₹150 Crores. The decision was made by the Company's Debenture Issue and Allotment Committee during a meeting held on June 22, 2026.The proposed issue involves offering 15,000 NCDs, each carrying a face value of ₹1,00,000, aggregating to the maximum size of ₹150 Crores. The issuance is structured as a Private Placement and has been approved within the limits established by the Board of Directors.
The NCDs are intended for listing on BSE Limited. They have a tenure of 24 months, with a deemed date of allotment set for June 29, 2026, and a maturity date fixed for June 29, 2028.
A key feature of the instrument is the security arrangement. The NCDs are secured pari passu with existing secured creditors on standard loan receivables and current assets (both present and future). To maintain this status, a minimum asset coverage ratio of 1.1 times the value of the outstanding amounts of the Debentures must be maintained until redemption.
The financial terms for the debenture issue include a coupon rate of 9.25% per annum. The coupon payments will occur quarterly, while the principal repayment is scheduled as a bullet payment at maturity. In the event that the issuer defaults on interest or principal payment for a period exceeding three months from the due date, a default interest rate of 1% above and beyond the Coupon Rate per annum will apply.
Key terms and timelines related to the debt instrument are detailed below:
| Particulars | Details |
|---|---|
| Security Type | Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable Non-Convertible Debentures (NCDs) |
| Issue Size | Up to ₹150 Crores |
| Tenure of Instrument | 24 months |
| Deemed Date of Allotment | June 29, 2026 |
| Deemed Date of Maturity | June 29, 2028 |
| Coupon Rate | 9.25% per annum |
| Coupon Frequency | Quarterly |
| Principal Payment | Bullet payment at maturity |
MUTHOOTCAP Stock Price Movement
Today, shares of Muthoot Capital Services Limited rallied in the closed market, settling at ₹210.78 after gaining 4.82%. The stock saw a trading volume of 88,184 as it finished its session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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