Muthoot FinCorp Limited, a well-known non-banking financial company (NBFC) in India and part of the 138-year-old Muthoot Pappachan Group, has launched its Tranche I Non-Convertible Debentures (NCDs) for February 2026 — offering investors an opportunity to earn attractive fixed returns. This latest NCD issuance combines the advantages of structured fixed-income investing with flexibility and a reputable credit profile.
Muthoot Fincorp NCD Issue Timeline:-
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Issue Opens: Tuesday, 3 February 2026
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Issue Closes: Monday, 16 February 2026
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Allotment Basis: First Come First Serve (FCFS)
Muthoot Fincorp NCD Issue Size & Structure:-
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Base Issue Size: ₹200 crore
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Oversubscription Option: ₹400 crore
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Total Tranche Size: ₹600 crore
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Shelf Issue Size: ₹2,737.04 crore
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Tranche Number: 1
About Company:-
Incorporated in 1997, Muthoot Fincorp Limited is a non-deposit-taking NBFC and a key company of the Muthoot Group. The company primarily focuses on gold loans, offering short-term personal and business loans secured against gold jewellery to meet customers’ immediate liquidity needs.
As of September 30, 2025, Muthoot Fincorp had around 35.38 lakh gold loan accounts, compared to 34 lakh accounts as of March 31, 2025, highlighting steady growth in its core lending business.
The company has a strong nationwide presence with 3,757 branches across 25 states, including Delhi and the Andaman & Nicobar Islands, as of December 31, 2025. It is supported by a workforce of 29,663 employees, including contractual specialists.
NCD Security Details:-
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Issuer Name: Muthoot Fincorp Limited
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Security Type: Secured, Redeemable, Non-Convertible Debentures (NCDs)
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Issue Price: ₹1,000 per NCD
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Face Value: ₹1,000 per NCD
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Minimum Application: 10 NCDs (₹10,000)
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Market Lot: 1 NCD
Listing & Trustee Information:-
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Stock Exchange Listing: Bombay Stock Exchange (BSE)
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Debenture Trustee: Vardhman Trusteeship Pvt. Ltd.
Credit Rating & Risk Profile:-
Muthoot FinCorp NCDs carry strong credit ratings, indicating a high level of safety and very low credit risk.
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CRISIL Ratings:
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Rating: AA-
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Outlook: Positive
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Safety Level: High degree of safety
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Brickwork Ratings:
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Rating: AA
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Outlook: Stable
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Safety Level: High degree of safety
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NCD Coupon Rates
| Series | Interest Payment | Tenure | Coupon Rate (% p.a.) | Effective Yield (% p.a.) | Maturity Amount (₹) |
|---|---|---|---|---|---|
| Series 1 | Monthly | 24 Months | 8.37% | 8.70% | 1,000 |
| Series 2 | Monthly | 36 Months | 8.52% | 8.85% | 1,000 |
| Series 3 | Monthly | 60 Months | 8.65% | 9.00% | 1,000 |
| Series 4 | Monthly | 72 Months | 8.75% | 9.10% | 1,000 |
| Series 5 | Annual | 24 Months | 8.70% | 8.70% | 1,000 |
| Series 6 | Annual | 36 Months | 8.85% | 8.84% | 1,000 |
| Series 7 | Annual | 60 Months | 9.00% | 8.99% | 1,000 |
| Series 8 | Annual | 72 Months | 9.10% | 9.10% | 1,000 |
| Series 9 | Cumulative | 24 Months | NA | 8.70% | 1,181.57 |
| Series 10 | Cumulative | 36 Months | NA | 8.85% | 1,289.99 |
| Series 11 | Cumulative | 60 Months | NA | 9.00% | 1,538.99 |
| Series 12 | Cumulative | 72 Months | NA | 9.10% | 1,686.76 |
Category-wise NCD Allocation:-
The issue is allocated across different investor categories as follows:
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Institutional Investors: 10%
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Non-Institutional Investors: 20%
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High Net-Worth Individuals (HNI): 40%
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Retail Investors: 30%
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Total Allocation: 100%
Objects of the Issue:-
The funds raised through this NCD Tranche will be utilized for the following purposes:
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On-lending and financing activities to support the company’s core business operations
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Repayment or prepayment of existing loans, including interest and principal obligations
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General corporate purposes, such as working capital requirements and operational expenses
NCD Registrar
Integrated Registry Management Services Pvt.Ltd.
Disclaimer-
This article is for informational and educational purposes only and should not be considered as investment advice. Investment in Non-Convertible Debentures (NCDs) is subject to market risks and credit risks. Readers are advised to read the offer document/prospectus carefully and consult with a qualified financial advisor before making any investment decision.
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