Muthoot Microfin Raises ₹250 Crore Through NCDs To Strengthen Funding Profile
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Muthoot Microfin has raised ₹250 crore through listed, rated, secured and redeemable NCDs. The 24-month securities are intended to strengthen the company's funding profile, diversify its liability mix and optimise borrowing costs.
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 securities will be listed on the Bombay Stock Exchange (BSE). The fundraise is part of the company's broader funding strategy.
Muthoot Microfin’s share price stood at ₹195.35 on the National Stock Exchange (NSE) at 9:48 am on 15 September 2026, down 0.58% from its previous close of ₹196.48. The stock touched a high of ₹199.31 and a low of ₹194.21 in the early trade.
Muthoot Microfin Focuses On Funding Diversification And Borrowing Costs
The company has allotted 2,50,000 NCDs with a face value of ₹10,000 each. The securities have a tenure of 24 months and carry a coupon rate of 9.25% per annum, payable every month.
The Muthoot Microfin NCDs are secured through a first-ranking, exclusive charge over the company's receivables. The issuance is within the limits approved by the company's Board of Directors.
The company said its cost of funds declined by 75 basis points (bps) in FY26. The company remains focused on further optimising borrowing costs and maintaining access to multiple sources of capital.
Muthoot Microfin also highlighted a recent upgrade in its credit rating to CRISIL AA-/Stable. According to Chief Executive Officer (CEO) Sadaf Sayeed, the stronger rating could support access to funding at competitive rates and help optimise the liability mix.
The company said the funding strategy is expected to support margins while allowing it to continue expanding its customer base across its markets.
About Muthoot Microfin
As of 30 June 2026, Muthoot Microfin had 3.25 million active customers served through 1,671 branches across 21 states and 392 districts. Its gross loan portfolio (GLP) stood at ₹14,457.2 crore.
The company's microfinance operations provide loans, including income-generating loans, to women engaged in small businesses. It also focuses on providing financial services to underprivileged and disadvantaged communities in rural areas.
The company is part of the S&P BSE Financial Services Index.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
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