Muthoot Fincorp NCD Tranche -V October 2026 Issue Review by Dilip Davda
Issue Details / Capital History
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.
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 The ratings provided by Crisil Ratings Limited and Brickwork Ratings India Private Limited may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating.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.
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.
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 24x7 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.
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.
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
