Muthoot Fincorp Limited NCD IPO

Summary: Muthoot Fincorp Limited is issuing the Non-Convertible Debentures. These NCDs are AA-/Positive rated by CRISIL and AA/Stable by Brickwork Ratings. The NCDs are being issued in twelve series: Coupon ranges from 8.51% to 9.25% p.a. and different tenures of 24 Months, 36 Months, 60 Months & 72 Months. The NCDs are secured and redeemable in nature.

Muthoot Fincorp Limited NCD IPO: Issue Overview

Muthoot Fincorp Limited is issuing Secured, Redeemable Non-Convertible Debentures (NCDs). This issue is a strategic opportunity for investors looking for fixed-income assets with a high degree of safety.

• • Credit Rating: AA-/Positive (CRISIL) and AA/Stable (BWR)
  • Yield Range: 8.84% to 9.25% p.a.
  • Tenures: 24, 36, 60, and 120 months.
  • Nature: Secured and Redeemable.
  • High Yield | CRISIL AA-/Positive & BWR AA/Stable Rated | Minimum Investment: 10k Only

Muthoot Fincorp NCD Interest Rates and Effective Yields:

The NCDs are being issued in twelve different series to cater to different investor needs, ranging from short-term liquidity to long-term wealth compounding

Understanding the Allocation Ratio:

The allocation ratio is prepared based on norms laid down by SEBI. Before announcing the allocation ratio, the same has to be approved by SEBI. Once the IPO subscription closes, applications will be divided into different categories.

How to Invest in Muthoot Fincorp NCD IPO via GoldenPi ?

Investing in Bond IPOs is now seamless. Follow these easy steps:

• Log in to GoldenPi.
• Look for the Search option and type Muthoot Fincorp
• Select Muthoot Fincorp NCD IPO 
• Choose your series and apply via UPI.

Financial Overview of Muthoot Fincorp Limited:

A deep dive into the company’s balance sheet reveals a consistent growth trajectory in revenue and net worth.

Snapshot stating the Revenue, Expenses, PAT and Net-worth (In crores):

Cash Flow Analysis (In crore):

Cash flow refers to the movement of cash in and out of the business at a specific point in time. It represents the net balance of the cash movement.

• • *Cash flow from operating activities reflects the amount a company generates through its product of services.
  • **Cash flow from investing activities reflects cash generated and spent relating to investing activities, like purchase of assets, sales of securities etc.
  • ***Cash flow from financing activities gives an insight into the financial stability of a company to its investors. It reflects the net flows of cash that are used to fund the company.

Ratio Analysis:

Should You Invest? Pros and Cons of Muthoot Fincorp NCD

Pros:

• • Strong Credit Rating: Rated CRISIL AA-/Positive and BWR AA/Stable, indicating high degree of safety and low credit risk​.

  • Secured NCDs: Senior secured NCDs provide safety in comparison to unsecured NCDs.

  • Security Cover: The security cover required must be a minimum of 100% of the total of the outstanding principal balance of the NCDs and any accrued interest.

  • Competitive yields: up to 9.25% vs bank FDs.​

  • Wide tenor and payout options: Monthly to Cumulative

Cons:

• Exposure to Gold Loan Volatility: A large portion (approx. 88%) of business depends on gold loan pricing and demand cycles. Any adverse movement in collateral value could impact collections.

• Interest Rate Risk: More pronounced in longer tenors (60-72 months).
  
  
• Structural Subordination and Security Dilution: These NCDs are “subservient” meaning if the company fails, major secured creditors (like Banks) get paid first and you only get what’s left over; additionally, you must share those remaining assets equally with all other NCD holders (Pari-Passu), which reduces your individual chance of being fully repaid in case company defaults.

Must Check: To get better returns than Bank FDs, invest in NCD-IPOs online.

About Muthoot Fincorp Limited:

Muthoot Fincorp Ltd. (MFL), incorporated in 1997 and registered with the RBI, is a Kerala-based, non-deposit taking NBFC. It primarily offers small-ticket “gold loans” against household gold jewellery, a segment where it has over two decades of experience.

Muthoot Fincorp Ltd, the flagship entity of the diversified Muthoot Pappachan Group (also known as Muthoot Blue Group), also provides secured and unsecured MSME lending. Beyond lending, the company offers mutual fund and insurance distribution, foreign exchange/money transfer services, operates as a Category II Depository Participant of CDSL, and owns wind power assets in Tamil Nadu.

Its three subsidiaries are: Muthoot Housing Finance (affordable housing loans), Muthoot Microfin (micro credit to women entrepreneurs), and Muthoot Pappachan Technologies (IT services). MFL has a strong pan-India presence, operating approx 3,781 branches (31st March, 2026) across 25 states and union territories, with key presence in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Maharashtra.

Strengths:

• Experienced management & strong promoter commitment: Promoters hold 99.86% equity stake, reflecting high confidence and long-term commitment; Muthoot Fincorp is part of the Muthoot Pappachan (Blue) Group with 138+ years legacy, backed by promoters’ deep, multi-decade expertise in gold loan and retail lending.

• Predominantly secured retail portfolio: Approx. 97% of AUM is secured, with approx. 88% backed by gold jewellery and ~9% through mortgages (home loans and LAP), supporting a low-risk, small-ticket retail lending model with strong collateral cover and high recoverability.

• Adequate Capitalisation: Net worth stood at ₹5,825 Cr as of 9M FY26, supported by strong internal accruals. Gearing is moderate at 6.20x, while a healthy CRAR of 18.17% (vs. RBI minimum requirement of 15%) provides adequate buffers to support growth and maintain financial stability.

• AUM Growth: AUM rose to ₹49,268 Cr as of 9M FY26 (vs ₹32,055 Cr in FY25 & ₹21,955 Cr in FY24). The efficiency at the branch level also saw a significant boost, with AUM/branch increasing to ₹6.97 Cr in FY25 (vs ₹4.74 Cr in FY22).

• Improving profitability profile: PAT increased to  ₹1057 Cr in 9M FY26 (vs  ₹787 Cr in FY25 & ₹563 Cr in FY24), with Return on Managed Assets (RoMA) improving to  2.9% in 9M FY26 (vs 2.3% in FY25 & 2.1% in FY24), driven by strong core gold loan performance.

• Healthy Asset Quality : GNPA improved to 1.34% (9M FY26) vs 1.98% (FY25), reflecting strong collection efficiency and low delinquencies in the gold loan book.

• Diversified  funding profile: Funding is well diversified, with access to a wide network of PSU Banks (SBI, PNB, BoB) and private banks (HDFC, Axis, IndusInd, Federal), alongside capital market instruments (NCDs, ECBs, Subdebt, CP), supporting funding stability and refinancing flexibility.

• Strong liquidity: As of Dec 2025, Muthoot Fincorp had liquidity of ₹3,166 Cr (₹2,321 Cr cash & equivalents + ₹845 Cr undrawn CC/WCDL), with positive ALM gaps in the up to 1-year bucket, comfortably covering near-term debt repayments of ₹2,686 Cr over the next three months.

Weakness:

• Regional Concentration Risk: Around 55% of business comes from just five states (Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, and Maharashtra). This makes the company vulnerable to local economic issues, though this is an improvement from 70% in 2019.

• High reliance on the gold loan segment: While gold loans are a strength, high business concentration limits diversification benefits and makes earnings sensitive to regulatory changes (RBI’s LTV ratio) or sharp volatility in gold prices.

Invest Now: Invest in Bond IPO online in just 5 minutes

Source: Tranche III Prospectus April 21, 2026
Disclaimer – The information is published as on date 27/04/2026 based on information available on Tranche III Prospectus April 21, 2026. The information may be subject to change in case of change in terms of prospectus or any other reason as the case may be. Contents which are exclusively for educational information/knowledge sharing on capital market concepts and have no influence on the investment/sale decisions of any investors.