The Muthoot Capital NCD issue of up to ₹200 crore received approval from the company's Debenture Issue and Allotment Committee on October 3, 2026, according to a BSE filing. Muthoot Capital Services Ltd said the committee approved the issue and allotment through private placement, within limits previously approved by the board.

The proposed issuance comprises up to 2,00,000 non-convertible debentures with a face value of ₹10,000 each. The instruments are senior, secured, rated, redeemable, taxable and transferable, with listing proposed on BSE Limited.

The approval sets out the borrowing amount, payment schedule and security terms. The filing specifies a future deemed allotment date of October 14, 2026, for the proposed securities.

Coupon and repayment schedule

The debentures carry a 9.25% annual coupon, payable monthly. Principal repayment will be on a bullet basis, rather than through periodic instalments.

  • Issue size: Up to ₹200 crore through private placement.
  • Tenure: 36 months.
  • Deemed allotment date: October 14, 2026.
  • Deemed maturity date: October 14, 2029.

The terms include a rating-linked coupon adjustment from the stated current rating of AA-. Each notch downgrade during the debentures' tenure can trigger a coupon increase of up to 25 basis points.

If the rating subsequently improves, the coupon will decrease by 25 basis points for each notch upgrade until the rating is restored to AA-. The coupon cannot fall below the initial rate.

Asset cover and default interest

The security will rank equally with existing secured creditors over the issuer's standard loan receivables and current assets, both present and future, in favour of the debenture trustee. It will be shared on a pari passu basis among applicable present and future NCD holders.

The company must maintain a minimum asset coverage ratio of 1.1 times the outstanding debenture amounts at all times until redemption.

If the issuer fails to pay interest or principal on the respective due dates, the terms provide for default interest of 2% per annum above the coupon rate for the defaulting period.