MCMuthoot Capital Services511766NCD issuance

Allotment of 2,00,000 Non-Convertible Debentures aggregating up to ₹200 Crores on private placement basis

The Debenture Issue and Allotment Committee approved the allotment of 2,00,000 Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferable, Non-Convertible Debentures of face value ₹10,000 each, aggregating up to ₹200 Crores.

By ScoutQuest · Wed 14 Oct 2026, 11:19 AM IST · 2 min read

NCD Allotment Size

2,00,000 Non-Convertible Debentures of face value ₹10,000 each, aggregating up to ₹200 Crores

Coupon Rate

9.25% p.a., payable monthly

Tenure

36 months; principal repaid as a bullet payment

What was allotted

The Debenture Issue and Allotment Committee approved the allotment of 2,00,000 Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferable, Non-Convertible Debentures (NCDs), each of face value ₹10,000, aggregating up to ₹200 Crores, on a private placement basis. The meeting commenced at 10:00 a.m. and concluded at 11:15 a.m.

Key terms of the issue

• Coupon rate: 9.25% per annum, payable monthly
• Tenure: 36 months; deemed date of allotment October 14, 2026, deemed date of maturity October 14, 2029
• Principal repayment: bullet, i.e. repaid as one lump sum at maturity
• Issuance type: private placement; listing proposed on BSE Limited

Security and cover

The NCDs are secured pari passu with existing secured creditors on standard loan receivables and current assets (both present and future) of the issuer, in favour of the Debenture Trustee, and are to be held on a pari passu basis among present and/or future NCD holders. A minimum asset coverage ratio of 1.1 times the value of the outstanding debenture amounts is to be maintained at all times until redemption.

Rating-linked coupon adjustment

If the rating of the debentures is downgraded from the current rating of 'AA-', the coupon steps up by up to 25 basis points for each notch of downgrade during the tenor. If the rating is upgraded afterwards, the coupon decreases by 25 basis points for each notch of upgrade, up to the existing rating, i.e. restored to 'AA-'. In no circumstance does the coupon rate go below the initial coupon rate.

Default interest

If the issuer fails to make interest or principal payments on the respective due dates, a default interest rate of 2% p.a. over and above the coupon rate applies for the defaulting period.

What this means for an investor

• This is a borrowing by the company, not a fresh issue of equity shares, so the number of shares stays unchanged.
• The company pays interest to debenture holders monthly at 9.25% per annum and repays the principal at the end of 36 months.
• The coupon is linked to the credit rating: a downgrade raises the interest the company pays, an upgrade lowers it, within the stated limits.
• The borrowing is secured on specified receivables and current assets, with a stated minimum asset coverage of 1.1 times.

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