Muthoot Capital Services Ltd Approves Allotment of ₹150 Crore Senior Secured NCDs in Private Placement
Muthoot Capital Services Ltd (MCSL) has announced the approval for the allotment of Non-Convertible Debentures (NCDs) through a private placement route. The company approved the issue of 15,000 Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable NCDs, each with a face value of ₹1,00,000/-.The total aggregate size of the proposed debt issuance stands up to ₹150 Crores. This private placement transaction adheres to the terms and conditions specified in the associated transaction documents. The company confirmed that these NCDs are planned for listing on BSE Limited.
Key Transaction Details
The Debenture Issue and Allotment Committee, which approved the allotment, set the deemed date of allotment as June 30, 2026. The NCDs have a tenure of 24 months, with the deemed maturity date set for June 30, 2028.The NCDs carry a coupon rate of 9.25% per annum, payable quarterly. The principal repayment is scheduled as a bullet payment upon maturity.
Security and Risk Parameters
Regarding security and charge, the NCDs are secured on a pari passu basis with existing secured creditors on standard loan receivables and current assets (present and future). A minimum asset coverage ratio of 1.1 times the value of the outstanding amounts is required to be maintained until redemption.The transaction structure includes specific provisions for default. If the issuer fails to make any payments of Interest and/or principal redemption to the Debenture Holders on their respective due dates, a default interest rate of 1% over the Coupon Rate per annum will apply for the defaulting period.
Overview of the NCD Issue
The details of the proposed securities issuance are summarized below:| Particulars | Details |
|---|---|
| Securities Type | Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable, Non-Convertible Debentures (NCDs) |
| Issuance Method | Private Placement |
| Total Securities Issued | 15,000 NCDs |
| Face Value per NCD | ₹1,00,000/- |
| Issue Size | Up to ₹150 Crores |
| Listing Status | Proposed listing on BSE Limited |
| Tenure | 24 months (Maturity: June 30, 2028) |
| Coupon Rate | 9.25% per annum (Paid Quarterly) |
| Security Charge | Pari Passu with existing secured creditors on standard loan receivables and current assets |
| Default Interest Rate | 1% over the Coupon Rate per annum |
MUTHOOTCAP Stock Price Movement
Shares of Muthoot Capital Services Limited are edging higher to ₹200.07 as of 11:29 AM today, gaining 0.47% in live trading. The stock maintains strong momentum amidst a daily range, hovering above its intraday low of ₹197.02 on a volume of 3,327 shares.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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