Muthoot Capital Services Limited has informed the Exchange regarding allotment of 25,000 Non-Convertible Debentures
MUTHOOTCAP · price
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Muthoot Capital Services has allotted 25,000 unsecured, subordinated, listed, redeemable Non-Convertible Debentures (NCDs) on a private placement basis, aggregating to ₹25 crores. Each NCD has a face value of ₹10,000 and carries a coupon rate of 10.75% per annum, payable monthly. The principal will be repaid as a bullet payment at maturity on March 28, 2031, with a total tenure of about 65 months and 28 days from the allotment date of September 30, 2025. The NCDs are proposed to be listed on BSE. This is a typical capital-raising exercise by an NBFC to strengthen its funds base.
For existing shareholders, this ₹25 crore debt raise is small relative to the company's size and is unlikely to cause material dilution since NCDs do not convert into equity. The 10.75% coupon is a reasonable borrowing cost, but subordinated debt means these instruments rank below other creditors, so existing debenture holders should note this layer of debt above them.