Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on May, 2026
• This is the 28h debt issue from this company since July 2014.
• The last debt issue was in March 2026.
• The company has come with this debt offer just within one and half of its previous offer.
• For this debt offer rates are hiked a bit, but tenors are maintained.
• Ratings are maintained as CRISIL/AA- Positive, and BWR AA/Stable.
• Well-informed investors looking for steady interest income may consider parking of moderate 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 Gold loan portfolio of the Company as of September 30, 2025, March 31, 2025 and March 31, 2024 comprised approximately 35.38 lakhs, 34.00 Lakhs and 30.46 lakhs loan accounts. As of March 31, 2026, it operated out of 3781 branches located across 25 states, including union territory of Andaman and Nicobar Islands and the national capital territory of Delhi and employed 29,505 employees including 65 contracted experts in its operations.
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.
The company is also engaged in generation and sale of wind energy through its wind farms located in Tamil Nadu and engaged in the business of real estate through joint venture developers of the company owned land parcels. Furthermore, it has also obtained the Certificate of Registration dated January 16, 2025 to act as Corporate Agent (Composite) for the period January 16, 2025 to January 15, 2028 from the Insurance Regulatory and Development Authority of India.
The company has un-recovered an amount of Rs. 14.78 cr. towards internal fraud/spurious/theft matters. Its contingent liabilities and commitments worth Rs. 300.25 cr. (page 26 + page 31) is not provided for. These are the main concerns for the investors at large.
ISSUE DETAILS:
The company is coming out with its 28th Debt offers as NCD April 26 issue, Tranche III. It will issue 6000000 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. 400 cr., thus making the overall issue size worth Rs. 600 cr. The company has a shelf limit of Rs. 3000 cr. The issue is opening for subscription on April 24, 2026, and will close on or before May 08, 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. 9.02 cr. for the proceeds of the entire amount of Rs. 600 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 between 8.51% to 9.25% and has the tenors for 24 months, 36 months, 60 months, 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, 40% for HNIs, and 30% for Retail investors.
ISSUE RATING:
This offer is rated as CRISIL AA – /Positive 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. 8511.44 cr. / Rs. 607.99 cr. (FY25). For 9M of FY26 ended on December 31, 2025,
on a standalone basis it earned a net profit of Rs. 1056.65 cr. on a total income of Rs. 5733.02 cr. Its current debt equity ratio as of the December 31, 2025, of 6.20 will stand enhanced to 6.30 post this issue. The offer documents are silent on its FY26 consolidated performance for 9M period.
Conclusion / Investment Strategy
This is the 28h debt issue from this company since July 2014. The last debt issue was in March 2026. The company has come with this debt offer just within one and half of its previous offer. For this debt offer rates are hiked a bit, but tenors are maintained. Ratings are maintained as CRISIL/AA- Positive, and BWR AA/Stable. Well-informed investors looking for steady interest income may consider parking of moderate funds.
Review By Dilip Davda on May, 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 ).
Courtesy: https://www.chittorgarh.com/
