MUTHOOT FINCORP LIMITED - Tranche 1 NCD Sep 2026
NCD · BSE
CRISIL AA/STABLE
BWR AA+/STABLE
Suitable for: Conservative to moderate-income fixed-income investors seeking regular or cumulative high-yield interest payouts backed by secured assets. Watch out for: High geographic concentration in southern India, heavy reliance on gold price volatility, and high leverage (Debt-to-Equity ratio of ~5.68 to 6.24 pre/post issue).
Type
IPO
Interest Rate
8.56–9.20%
Tenor
2.0–6.0Y
Min Invest
₹10,000
NCD IPO Schedule
Open Date
08 Sep 2026
Close Date
22 Sep 2026
Issue Size
₹700 Cr
Status
open
Basis of Allotment
First Come First Serve
Base Issue Size
₹350 Cr
Oversubscription Option
₹350 Cr
Offer Documents
Available Series / Options
| Series | Tenor | Rate % p.a. | Payment | Min Invest | Eff. Yield |
|---|---|---|---|---|---|
| Series I | 24M (2.0Y) | 8.560% | monthly | ₹10,000 | 8.900% |
| Series VII | 60M (5.0Y) | 9.200% | annual | ₹100,000 | 9.190% |
| Series II | 36M (3.0Y) | 8.750% | monthly | ₹100,000 | 9.100% |
| Series III | 60M (5.0Y) | 8.840% | monthly | ₹100,000 | 9.200% |
| Series IV | 72M (6.0Y) | 8.880% | monthly | ₹100,000 | 9.240% |
| Series V | 24M (2.0Y) | 8.900% | annual | ₹100,000 | 8.890% |
| Series VI | 36M (3.0Y) | 9.100% | annual | ₹100,000 | 9.090% |
Indicative Returns on ₹1,00,000
For a ₹1,00,000 investment in MUTHOOT FINCORP LIMITED - Tranche 1 NCD, here is the projected interest and maturity value for each series at its stated coupon rate.
| Series | Tenor | Rate | Payment | Periodic Income | Total Interest | Maturity Value | Effective CAGR |
|---|---|---|---|---|---|---|---|
| Series I | 2.0Y | 8.56% | monthly | ₹713 | ₹17,120 | ₹100,000 | — |
| Series VII | 5.0Y | 9.20% | annual | ₹9,200 | ₹46,000 | ₹100,000 | — |
| Series II | 3.0Y | 8.75% | monthly | ₹729 | ₹26,250 | ₹100,000 | — |
| Series III | 5.0Y | 8.84% | monthly | ₹737 | ₹44,200 | ₹100,000 | — |
| Series IV | 6.0Y | 8.88% | monthly | ₹740 | ₹53,280 | ₹100,000 | — |
| Series V | 2.0Y | 8.90% | annual | ₹8,900 | ₹17,800 | ₹100,000 | — |
| Series VI | 3.0Y | 9.10% | annual | ₹9,100 | ₹27,300 | ₹100,000 | — |
Indicative only, based on the stated coupon rate. Not investment advice. For monthly/quarterly/annual payout series, Effective CAGR is shown as "—" — the payout is not reinvested, so the stated coupon rate is already the annualised return.
Issue Details
Debenture Trustee
Vardhman Trusteeship Private Limited
Payment Mode
ASBA/UPI
Security
100% Security Cover
Registrar
Integrated Registry Management Services Private Limited
Lead Manager
Nuvama Wealth Management Limited
Statutory Auditor
M/s. Isaac & Suresh, Chartered Accountants, M/s. Vishnu Rajendran & Co, Chartered Accountants
About This Issue
Muthoot Fincorp Limited is launching a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) aggregating up to ₹3,00,000 lakhs (Shelf Limit). The NCDs will be issued in one or more tranches within a 1-year validity period of the shelf prospectus. The company is a systemically important non-deposit-taking NBFC (NBFC-ML) with a strong operational focus on retail gold loans. The issue carries credit ratings of CRISIL AA-/Positive and BWR AA/Stable, indicating a high degree of safety regarding the timely servicing of financial obligations.
Objects of the Issue
The net proceeds (after deducting issue-related expenses) are intended to be utilized for:
1)At least 75%: For onward lending, financing, and repayment/prepayment of interest and principal on the company's existing borrowings.
2) Up to 25%: For general corporate purposes.
Investment Calculator
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Year-wise Breakdown
| Year | Interest Earned | Cumulative |
|---|
Projections are indicative only. Not investment advice.
Enquire NowTax on NCD Interest
Interest earned on these NCDs is fully taxable in the investor's hands at their applicable income-tax slab rate. For NCDs listed on a stock exchange and held in dematerialized form, no TDS is deducted for resident individual holders under the proviso to Section 193 of the Income-tax Act — this is a TDS exemption only, not a tax exemption, and the interest must still be declared as taxable income. For unlisted or physical-form holdings, TDS applies where interest exceeds the prescribed threshold; residents can submit Form 15G/15H to seek non-deduction if eligible. NRIs/FPIs should confirm eligibility and tax-treaty treatment separately, only if this issue is open to non-resident investors. Consult a tax advisor for your specific situation.
Key Risks
- Gold Price Volatility: A sharp downward movement in gold prices could reduce collateral value, leading to customer defaults and potential losses upon auction.
- High Leverage & Borrowing Costs: The company carries substantial debt (Debt-to-Equity ratio of ~5.68 on a standalone basis as of September 30, 2025); any disruption in low-cost funding sources or spikes in interest rates can squeeze net interest margins.
- Geographic Concentration: A significant portion of branches and the gold loan portfolio are concentrated in southern India (Kerala, Tamil Nadu, Andhra Pradesh, Karnataka), making operations vulnerable to regional economic or political downturns.
- Operational Risks: Handling large volumes of physical cash and gold across a dispersed branch network exposes the company to risks of employee fraud, theft, and appraisal lapses.
Who Should Consider This NCD
Investors looking for predictable fixed-income returns with high credit ratings (AA-/Stable/Positive). Individuals and institutional investors wanting exposure to secured retail-backed debt instruments. Investors comfortable with a tenure matching the specific tranche options provided during the rollout.
Liquidity & Early Exit
Listing: The NCDs are proposed to be listed on BSE Limited, providing an exit route via the secondary market. Secondary Market Liquidity: Historically, secondary market liquidity for public NCD issues can be low, and units may trade at a discount or experience price volatility depending on prevailing interest rates.
Documents & How to Invest
Apply through your stockbroker's platform (ASBA) or via UPI-based application if supported. Documents required: PAN card, a Demat account, and a bank account linked to your Demat/UPI mandate for blocking application funds. NCDs are allotted in dematerialized form directly to your Demat account. Retain the application acknowledgement until allotment is confirmed.
Frequently Asked Questions
What is the total issue size?
The public issue is for secured, redeemable, non-convertible debentures (NCDs) aggregating up to ₹3,00,000 lakhs (the Shelf Limit), to be issued in one or more tranches.
How will the net proceeds from the NCD issue be utilized?
At least 75% of the net proceeds will be used for onward lending, financing, and for the repayment or prepayment of interest and principal of existing borrowings, while up to 25% will be allocated for general corporate purposes.
What is the nature of the security cover provided for these NCDs?
The NCDs are secured by way of a subservient charge with existing secured creditors on standard loan receivables and current assets (both present and future) of the company on a pari passu basis, ensuring a 100% security cover for the principal amount and accrued interest.
Where will the NCDs be listed after allotment?
The NCDs offered through the prospectus are proposed to be listed on BSE Limited, which is designated as the Stock Exchange for the issue.
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View all →Written by Tushar Paturde, AMFI-registered MFD, CFP · Last verified 11 Sep 2026 · Source: Debt Offer Document : Draft filed with SE
Disclaimer: This page is for informational purposes only. NCDs and bonds carry credit risk. Please read the offer document before investing.
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