Muthoot Fincorp NCD Tranche – V September 2026 Review by Dilip Davda

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. It operates a scaled and growing diversified business, with AUM of Rs. 34447.19 cr., on a consolidated basis, and Rs. Rs. 56185.10 cr., on a standalone basis, as of March 31, 2026, and Rs. 35160.28 cr., on a standalone basis, as of June 30, 2026, reflecting growth across products and geographies.

As of June 30, 2026, the Company had 3845 branches, on a standalone basis, and a growing digital user base of 41.10 lakh customers, on a standalone basis, as of June 30, 2026. As of June 30, 2026, its physical network comprised 3845 gold loan branches and 326 processing centres across 25 states and union territories, on a standalone basis. As of June 30, 2026, it had a team of 2751 business development officers and 2469 feet-on-street personnel, and 29749 employees on a standalone basis.

The company is coming out with its 30th Debt offers as NCD June 26 issue, Tranche V. It will issue 7000000 secured, redeemable non-convertible debentures of face value of Rs. 1000 each. Under this debt offer it is issuing NCDs worth Rs. 350 cr. as the base size with a green shoe option of retaining additional subscription to the tune of Rs. 350 cr., thus making the overall issue size worth Rs. 700 cr. The company has a shelf limit of Rs. 3000 cr. The issue is opening for subscription on September 08, 2026, and will close on or before September 22, 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. 9.48 cr. for the proceeds of the entire amount of Rs. 700 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 8.56% 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, 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.