Muthoot FinCorp Opens ₹400 Crore NCD Issue with Yields Up to 10.10%

Muthoot FinCorp announced the opening of subscriptions for its latest Tranche IV secured, redeemable non-convertible debentures (NCDs) on February 4, targeting to raise up to ₹400 crore. The offering provides investors with an effective annual yield ranging from 9.38% to 10.10%, with tenure options between 18 and 72 months.

Fundraising Structure and Purpose

The Tranche IV NCD issue consists of a ₹100 crore base offering, along with a ₹300 crore green shoe option, bringing the total potential fundraising to ₹400 crore. Muthoot FinCorp stated that the proceeds will be utilized for lending, refinancing existing debt, and general corporate purposes. The subscription period will remain open until February 17, unless closed earlier.

Credit Rating and Investment Channels

The NCDs have been assigned a CRISIL AA-/Stable rating, indicating a high degree of safety regarding timely financial obligations. Investors can subscribe through Muthoot FinCorp’s 3,700+ branches or via the Muthoot FinCorp ONE app, which facilitates digital transactions. The NCDs will be listed on the BSE’s debt market segment.

Subscription Process and SEBI Guidelines

Retail investors applying through intermediaries for amounts up to ₹5 lakh must use UPI for fund blocking, as per SEBI regulations. Other application methods, including Self-Certified Syndicate Banks (SCSBs), remain available.

About Muthoot FinCorp

Muthoot FinCorp, a part of the 138-year-old Muthoot Pappachan Group, is a non-banking financial company (NBFC) catering to semi-urban and rural customers with a wide range of credit products.

Stock Performance 

On January 29, 2025, Muthoot FinCorp share price traded 1.36% higher at ₹2,268.75 at 10:32 AM (IST). Muthoot FinCorp’s share price reached a 52-week high of ₹2,274.12 on February 01, 2024, and a 52-week low of ₹35.49 on March 14, 2024. As per BSE, the total traded volume for the stock stood at 3.19 lakh shares with a turnover of ₹1.68 crore.

At the current price, Muthoot FinCorp shares are trading at a price-to-earnings (P/E) ratio of 150.74x, based on its trailing 12-month earnings per share (EPS) of ₹0.35, and a price-to-book (P/B) ratio of 18.51, according to exchange data.

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