Muthoot Capital Services Limited Approves Up To ₹100 Crores Senior Non-Convertible Debenture Issue
Muthoot Capital Services Limited has approved the issuance of up to ₹100 Crores worth of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable, Non-Convertible Debentures (NCDs). This decision was made by the Company's Debenture Issue and Allotment Committee during a meeting held on Tuesday, August 18, 2026.The issuance is structured as a Private Placement and aims to raise funds under the purview of the Board's approved limits. The NCDs are intended for listing on the BSE Limited.
The key terms and details regarding the proposed issue include:
| Particulars | Details |
|---|---|
| Type of Securities | Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable, Non-Convertible Debentures ('NCDs') |
| Issuance Method | Private Placement |
| Total Issue Size | Up to ₹100 Crores (in the form of 1,00,000 NCDs with a Face Value of ₹1,000 each) |
| Listing Exchange | BSE Limited |
| Tenure | 36 months |
| Deemed Allotment Date | August 24, 2026 |
| Deemed Maturity Date | August 24, 2029 |
Terms and Security Details of NCDs
The instrument includes specific terms regarding security and coupon adjustments. The debentures are secured by a charge that is Pari Passu with existing secured creditors on standard loan receivables and current assets (both present and future) of the Issuer. This security must maintain a minimum asset coverage ratio of 1.1 times the value of the outstanding amounts of the Debentures until redemption.The NCDs carry a coupon rate of 9.25% per annum, with interest payments structured monthly. The principal repayment is scheduled as a Bullet payment.
A key feature attached to the instrument involves step-up and step-down clauses linked to credit ratings. The debenture includes a provision for a coupon step up of up to 25 basis points for every notch downgrade from the current rating ('AA') during the tenure. Conversely, if the rating is upgraded after any prior downgrade, the coupon must decrease by 25 basis points for each notch upgrade until the rating returns to 'AA'. The company clarified that under no circumstances shall the coupon rate fall below the initial Coupon Rate.
Should there be a delay in interest or principal payment exceeding three months from the due date, the default interest rate is set at 2% per annum above and beyond the Coupon Rate for the defaulting period.
MUTHOOTCAP Stock Price Movement
As of 1:55 PM, shares of Muthoot Capital Services Limited slip slightly in live trading, shedding ₹2.28 or 0.88% and currently resting at ₹256.41. The company saw a reported traded volume of 783 shares during the active market 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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