Committee approves issue and allotment of secured NCDs up to ₹200 crore at 9.25% coupon

The Debenture Issue and Allotment Committee approved issue and allotment of secured NCDs up to ₹200 crore on a private placement basis.

Sat 3 Oct 2026

Issue size

up to ₹200 crore

Number of NCDs

up to 2,00,000 NCDs of face value ₹10,000 each

Coupon

9.25% per annum, paid monthly

Allotment and maturity dates

Deemed date of allotment October 14, 2026; maturity October 14, 2029 (36 months)

Asset coverage

minimum asset coverage 1.1 times

What was approved

The Debenture Issue and Allotment Committee of the board of Muthoot Capital Services Limited, at its meeting on Saturday, October 03, 2026, approved the issue and allotment of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferrable, Non-Convertible Debentures up to Rupees Two Hundred Crores, on a private placement basis, within the limits as approved by the board.

Issue snapshot

• Size of issue: up to ₹ 200 Crores
• Number: up to 2,00,000 NCDs of face value ₹10,000 each
• Type of issuance: private placement
• Listing: Yes, BSE Limited
• Tenure of the instrument: 36 months
• Deemed date of allotment: October 14, 2026
• Deemed date of maturity: October 14, 2029

Interest and repayment

• Coupon rate: 9.25% per annum
• Coupon frequency: monthly
• Principal payment frequency: bullet, meaning the principal is repaid at maturity rather than in instalments

What secures the NCDs

The debentures carry a charge 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. The charge is to be held on a pari passu basis among the present and/or future NCD holders.

A minimum asset coverage ratio of 1.1 times the value of the outstanding amounts of the debentures must be maintained at all times until the debentures are redeemed.

Rating-linked coupon adjustment

• A step-up in coupon of up to 25 basis points for each notch downgrade in the debentures from the current rating of 'AA-', during the tenor of the debentures.
• If the rating is upgraded after any downgrade, the coupon is decreased by 25 basis points for each notch upgrade by the rating agency, up to the existing rating, i.e. restored to 'AA-'.
• In no circumstance shall the coupon rate go below the initial coupon rate.

If interest or principal is not paid

• Where interest or principal is delayed for more than three months from the due date, or there is a default in payment of interest or principal, a default interest rate of 2% p.a. over and above the coupon rate per annum applies for the defaulting period, if the issuer fails to make interest or principal payments on their respective due dates.
• On the question of any letter or comments regarding payment or non-payment of interest or principal on due dates, or any other matter concerning the security and/or the assets, the update states Not Applicable.

On redemption, including of preference shares

The manner of redemption is stated as per the terms as may be mutually agreed between the parties.

How to read this

This is a borrowing decision. The company is raising money by issuing listed, secured debentures to investors on a private placement basis rather than by issuing fresh equity shares, so the funds come in as debt to be repaid over 36 months with interest at 9.25% per annum. The disclosures tell you the size, the cost of the borrowing, its tenor, the security backing it, and the conditions attached, which are the quantitative points a reader can weigh when tracking the company's borrowings.

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