Committee approves issue of up to Rs. 200 crore non-convertible debentures on private placement

The Debenture Issue and Allotment Committee approved issue and allotment of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferable, Non-Convertible Debentures up to Rs. 200 crore, on a private placement basis.

Sat 3 Oct 2026

Issue Size

up to Rs. 200 crore

Number of NCDs

Up to 2,00,000 NCDs

Face Value

₹10,000 each

Coupon Rate

9.25% per annum, paid monthly

Tenure

36 months, principal in a bullet payment

What the committee approved

The Debenture Issue and Allotment Committee of the Board of Muthoot Capital Services Limited, at its meeting held on Saturday, October 03, 2026, approved the issue and allotment of Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferable, Non-Convertible Debentures up to Rupees Two Hundred Crores, on a private placement basis, within the limits as approved by the Board. The meeting commenced at 03:30 p.m. and concluded at 4:15 p.m.

Key terms of the proposed issue

• Type of securities: Senior, Secured, Rated, Listed, Redeemable, Taxable, Transferable, Non-Convertible Debentures ("NCDs")
• Type of issuance: Private Placement
• Total number: up to 2,00,000 NCDs of face value ₹10,000 each, aggregating up to ₹ 200 Crores
• Size of issue: up to ₹ 200 Crores (Rupees Two Hundred Crores only), within the limits as approved by the Board
• Listing: yes, BSE Limited
• Tenure: 36 months; deemed date of allotment October 14, 2026; deemed date of maturity October 14, 2029
• Coupon: 9.25% per annum, paid monthly; principal payment frequency is a bullet payment

Security and rating-linked terms

• 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, to be held on a pari passu basis among present and/or future NCD holders, with a minimum asset coverage ratio of 1.1 times the value of the outstanding amounts of the debentures, maintained at all times until redemption.
• Coupon adjustment: a step up in coupon of up to 25 basis points for each notch downgrade in the debentures from the current rating, i.e. 'AA-', during the tenor. If the rating is upgraded after any downgrade, the coupon shall be decreased by 25 basis points for each notch upgrade, up to 'AA-'. In no circumstance shall the coupon rate go below the initial coupon rate.
• Default interest: 2% p.a. over and above the coupon rate per annum for the defaulting period, if the issuer fails to make interest or principal payments on the respective due dates.

Points a retail reader may note

• This is a fund-raising through privately placed debentures. The instrument is proposed to be listed on BSE Limited, and the coupon, tenure and repayment structure are the commercial terms of this borrowing.
• The debentures are secured by a charge on standard loan receivables and current assets, shared on a pari passu basis with existing secured creditors and present and/or future NCD holders.
• On redemption of preference shares and debentures, the terms are as may be mutually agreed between the parties.

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