– By Dilip Davda
- This is the 31st debt issue from this company since July 2014.
- The last debt issue was in September 2026.
- The company has come with this debt offer just within one month of its previous offer.
- For this debt offer rates and tenors are maintained.
- Ratings are maintained as CRISIL AA/Stable, and BWR AA+/Stable.
- Well-informed investors looking for steady interest income may consider parking of funds.
ABOUT COMPANY:
Muthoot Fincorp Ltd. (MFL) is middle layer NBFC (“NBFC ML”) registered with the RBI. The Company is one of the prominent gold loan players in the Indian market. The personal and business loans secured by gold jewellery and ornaments (“Gold loans”) offered by the Company are structured to serve the business and personal purposes of individuals who do not have ready or timely access to formal credit or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.
The company has been engaged in the gold loans business for over two decades and are headquartered in Kerala, India. It provides retail loan products, primarily comprising of gold loans. Its Gold Loan variants include Muthoot Blue Super Value Loan, Easy Blue, Easy Max, Easy Pro, Restart India Pradhan, Easy Scale Up, Vyapar Vikas, Kisan Vikas, Udaan etc which are designed to suit needs and preferences of various customer segments. The 24×7 Express Gold loan facility of the Company helps customers to avail quick top-up loans (subject to eligibility) against their gold jewellery already pledged with it.
In addition to the gold loan business, it also provides secured loans to the MSME segment and salaried
customers, digital and other unsecured loans to the MSME segment, small businesses, traders, and similar customer segments. The company also distributes mutual funds, general and life insurance products, provides foreign exchanges through its branches and also provides money transfer services as sub-agents of various registered money transfer agencies.
Building on the core gold loan franchise, the Company has progressively diversified into a broader, multi-business-unit financial services franchise spanning gold loans and its Business and Personal Finance Division, supported by Muthoot FinCorp ONE, its digital platform. Its Business and Personal Finance Division offerings span across retail and MSME lending, including loans against property, business loans, supply chain finance, housing loans and supported by other adjacent offerings. Muthoot FinCorp ONE has been built as a proprietary digital capability that enables customers to digitally experience the entire loan journey for its products, certain Muthoot Pappachan Group products and third-party lending offerings. Company’s business units and its Subsidiaries, MHFCL and MML, operate with dedicated business leaders, underwriting and collections, while leveraging a proprietary technology platform that ensures a seamless, singular journey for the end customer.
This integrated model allows customers to access multiple products through unified journeys across physical and digital channels based on need, preference and lifecycle stage, enabling deeper relationships, higher multi-product engagement and broader reach across geographies. MFL’s diversification into the Business and Personal Finance Division also allows it to leverage existing gold loan customer relationships, branch network and field infrastructure to serve broader household and MSME financial requirements, enabling it to build a longer-tenure and more granular loan book and improve operating leverage. This increasing diversification enhances the structural resilience of its business, improves ability to navigate credit cycles and reduces dependence on any single product, while positioning it to capture a broader share of its customers’ financial needs over time.
As of September 30, 2026, the Company had 3872 branches, and 326 processing centres across 25 states, and union territories, and a growing digital user base of 46.42 lakh customers, on a standalone basis. On the said date, it has a team of 2886 business development officers and 2208 feet-on-street personnel. Its employee’s headcount stood at 30436 as of September 30, 2026.
ISSUE DETAILS:
The company is coming out with its 31st Debt offers as NCD Oct. 26 issue, Tranche I. It will issue 5000000 secured, redeemable non-convertible debentures of face value of Rs. 1000 each. Under this debt offer it is issuing NCDs worth Rs. 200 cr. as the base size with a green shoe option of retaining additional subscription to the tune of Rs. 300 cr., thus making the overall issue size worth Rs. 500 cr. The company has a shelf limit of Rs. 4000 cr. The issue is opening for subscription on October 23, 2026, and will close on or before November 05, 2026.
The minimum application is to be made for 10 NCDs (Rs. 10000) and in multiple of 1 NCD (Rs. 1000) thereon, thereafter. Post-allotment NCDs will be listed on BSE.
MFL will spend Rs. 8.59 cr. for the proceeds of the entire amount of Rs. 500 cr. Out of the available net proceeds, at least 75% will be used for onward lending, financing, repayment/prepayment of existing borrowings with interest, and the balance up to 25% for general corporate purposes.
The issue is solely lead managed by Nuvama Wealth Management Ltd., while Integrated Registry Management Services Pvt. Ltd. is the registrar of the issue and Vardhman Trusteeship Pvt. Ltd. is the Debenture Trustee.
It offers the coupon rates ranging from 8.56% to 9.25% and has the tenors for 24 months, 36 months, 60 months and 72 months. Interest payment will be either Monthly, Annually, or Cumulative as per the series applied.
The company has allocated 10% for Institutional investors, 20% for non-institutional investors, 50% for HNIs, and 20% for Retail investors.
ISSUE RATING:
This offer is rated as CRISIL AA / Stable by CRISIL, and BWR AA+/Stable. The rating given by Crisil Ratings Limited and Brickwork Ratings India Private Limited is valid as on the date of this Tranche I Prospectus and shall remain valid on date of issue and Allotment of the NCDs and the listing of the NCDs on BSE. The ratings of the NCDs indicates that instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The ratings provided by Crisil Ratings Limited and Brickwork Ratings India Private Limited may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and Investors should take their own decisions.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, MFL has (on a consolidated basis) posted total revenue/net profits of Rs. 4101.19 cr. / Rs. 397.28 cr. (FY21) and Rs. 4355.13 cr. / Rs. 412.55 cr. (FY22), and Rs. 5151.33 cr. / Rs. 646.42 cr. (FY23), and Rs. 6554.31 cr. / Rs. 1047.98 cr. (FY24), Rs. 8511.57 cr. / Rs. 607.99 cr. (FY25), Rs. 11227.80 cr. / Rs. 1847.62 cr. (FY26). For Q1 of FY27 ended on June 30, 2026, it earned a net profit of Rs. 705.48+ cr. on a total revenue of Rs. 3158.83 cr. It has posted consistent growth in its top and bottom lines for the reported periods. Its current debt equity ratio as of the June 30, 2026, of 6.21 will stand enhanced to 6.30 post this issue.
CONCLUSION:
This is the 31st debt issue from MFL since July 2014. The last debt issue was in September 2026. The company has come with this debt offer just within one month of its previous offer. For this debt offer rates and tenors are maintained. Ratings are maintained as CRISIL AA/Stable, and BWR AA+/Stable. Well-informed investors looking for steady interest income may consider parking of funds.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
