DBT Bureau
Pune, 15 Sep 2026
Muthoot Microfin Limited has raised ₹250 crore through the allotment of listed, rated, secured and redeemable Non-Convertible Debentures (NCDs) on a private placement basis. The NCDs will be listed on BSE Limited.
This latest fund raise forms part of Muthoot Microfin’s continued strategy to strengthen its funding profile, diversify its liability mix and optimise its overall cost of borrowing. As part of the issuance, the Company has allotted 2,50,000 NCDs of ₹10,000 each, aggregating to ₹250 crore, with a tenure of 24 months and a coupon rate of 9.25% per annum, payable monthly.
Commenting on the development, Sadaf Sayeed, CEO, Muthoot Microfin Limited, said, “The ₹250 crore fund raise is an important step towards strengthening our funding profile and maintaining access to diversified sources of capital. Our cost of funds declined by 75 bps in FY26, and we remain focused on consistently optimising our borrowing costs. The recent upgrade in our credit rating to CRISIL AA-/Stable further strengthens our ability to access funding at competitive rates and optimise our liability mix. Over the medium term, this will also support our focus on strengthening margins while continuing to grow responsibly and serve more customers across our markets.”
The fund raise is well within the limits approved by the Company’s Board of Directors and underscores the continued confidence of investors in Muthoot Microfin’s financial strength and growth trajectory. The instruments are secured by a first-ranking, exclusive charge over the Company’s receivables, reinforcing the strength of the issuance.
