– By Dilip Davda
- This is the 9th debt offer from the company since December 2023.
- The last debt offer was in May 2026.
- This issue is rated ACUITE A- / Stable by Acuite Ratings. The company has changed its rating agency for this issue. Drastic fall in bottom line for Q1-FY27 raise major concern.
- Only well-informed investors may park moderate funds for medium term.
ABOUT COMPANY:
Muthoot Mercantile Ltd. (MML) is a non-deposit taking non-banking financial company- base layer registered with the RBI under section 45-IA of the RBI Act, primarily engaged in the gold loan sector lending money against the pledge of household and/or used gold jewellery (“Gold Loan”) primarily to retail customers who require immediate availability of funds, but who do not have access to formal credit on an immediate basis and are also engaged in providing unsecured loans (“Pronote Loan”) to individual customers for their personal needs. It is also having arrangements with various agencies and brokers for Money Transfer and Insurance Business.
As of September 30, 2026, we disbursed Gold Loan and Pronote Loan to its customers from a network of 324 branches of the Company in 11 states and 1 union territory of India namely Tamil Nadu, Kerala, Delhi, Haryana, Maharashtra, Madhya Pradesh, Odisha, Punjab, Uttar Pradesh, West Bengal, Rajasthan and Gujarat. As of September 30, 2026, it employed 1228 persons in operations. Its branches function as the key point of contact for loan origination, disbursement, and collection processes as well as facilitating customer interaction.
ISSUE DETAILS:
The company is coming out with its 9th debt issue of 2000000 NCD issue with a base size of Rs. 100 cr. and has a green shoe option to retain oversubscription to the tune of Rs. 100 cr., thus the overall size of the debt issue will be Rs. 200 cr. The company is issuing secured, redeemable non-convertible-debentures having a face value of Rs. 1000 each. A minimum application is to be made of 10 NCDs (i.e., Rs. 10000) and in multiple of 1 NCD (i.e., Rs. 1000) thereon, thereafter. The issue opens for subscription on November 12, 2026, and will close on or before November 26, 2026. Post allotment, NCDs will be listed on BSE. MML is spending Rs. 1.45 cr. for this Rs. 200 cr. NCD issue and from the net proceeds, it will utilize at least 75% for the purpose of onward lending, financing, repayment of existing borrowings, and maximum up to 25% for general corporate purposes. The final offer document was made available only late eve on November 11, 2026, on public domains.
The issue is jointly lead managed by Vivro Financial Services Pvt. Ltd. and Tipsons Consultancy Services Pvt. Ltd., while KFin Technologies Ltd. is the registrar of the issue. Mitcon Credentia Trusteeship Services Ltd is the debenture trustee.
This NCD issue has tenors of 400 days, 24 months, 30 months, 36 months, 60 months, and 78 months. It offers a coupon rate ranging from 10.00% to 11.00% with interest payment options of Monthly or Cumulative, as per the series opted by the investors. The company has allocated 10% for Institutional portion, 15% for non-institutional portion, 40% for HNIs and 35% for Retail investors.
ISSUE RATINGS:
This debt offer is rated ACUITE A – / Stable by Acuite Ratings & Research Ltd. The rating of NCDs by Acuite Ratings indicates that instruments with this rating is considered to have adequate degree of safety regarding timely servicing of financial obligations and carry low credit risk. This rating is not a
recommendation or suggestion, directly or indirectly, to buy, sell, make or hold securities and investors should take their own decisions. The rating assigned by Acuite Ratings is valid as on the date of this Draft Prospectus and shall remain valid as on the date of issue, allotment and the listing of the NCDs on BSE. These rating may be suspended, withdrawn or revised at any time by the assigning rating agency on the basis of new information etc., and should be evaluated accordingly.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last four fiscals, MML has posted a total income of Rs. 49.39 cr. / Rs. 14.02 cr. (FY21), Rs. 67.02 cr. / Rs. 17.02 cr. (FY22), and Rs. 94.78 cr. / Rs. 17.70 cr. (FY23), Rs. 131.78 cr. / Rs. 24.28 (FY24), Rs. 166.43 cr. / Rs. 28.09 cr. (FY25). Rs. 248.79 cr. / Rs. 53.35 cr. (FY26). For Q1of FY27 ended on June 30, 2026, it earned a net profit of Rs. 0.96 cr. on a total income of Rs. 78.16 cr. It marked steady growth in its top and bottom lines for the reported periods, but the bottom-line de-growth for Q1-FY27 raise concerns.
MML’s net NPA stood at 0.36%% as of June 30, 2026, against 0.17% as of March 31, 2026. Its debt-equity ratio as of June 30, 2026, of 4.51 will stand enhanced to 5.28 post this issue. As of the said date, its loan book stood at Rs. 1382.29 cr.
CONCLUSION:
This is the 9th debt offer from MML since December 2023. The last debt offer was in May 2026. This issue is rated ACUITE A- / Stable by Acuite Ratings. The company has changed its rating agency for this issue. Drastic fall in bottom line for Q1-FY27 raise major concern. Only well-informed investors may park moderate
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 ).
