Muthoot Capital Services Limited has informed the Exchange regarding Outcome of Meeting of Debenture Issue and Allotment Committee held on July 24, 2025.
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Muthoot Capital Services has approved the issue and allotment of up to ₹150 crores of senior, secured, rated, listed, redeemable, taxable, transferable Non-Convertible Debentures (NCDs) on a private placement basis. The issue consists of 15,000 NCDs with a face value of ₹1,00,000 each, carrying a coupon rate of 10.00% per annum paid monthly, with bullet principal repayment at maturity. The tenure is 24 months, with allotment on July 29, 2025 and maturity on July 29, 2027, and the NCDs will be listed on BSE. The issue is secured by a first-ranking pari passu charge on the company's book debts and loan receivables, maintained at 1.1 times the redemption amount.
The ₹150 crore NCD raise at 10% will help the company grow its lending book. For shareholders, this means modest earnings accretion potential but no equity dilution. The 10% coupon and 1.1x asset cover suggest prudent borrowing terms, though the cost is above recent G-sec yields.