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The issue offers highly competitive coupon rates of up to 9.25% per annum (for Series 8, 72 Months, Annual payout), making it an attractive fixed-income choice in the current market environment. The net proceeds of this public issue will be utilized primarily for onward lending, financing, and refinancing/repayment of existing borrowings, as well as general corporate purposes.
In this comprehensive review, we cover everything investors need to know, including issue details, interest rates, financial performance, credit rating, security cover, risks, taxation, and our expert verdict on whether the NCD is worth considering.
Muthoot Fincorp NCD – Key Issue Details
Tranche V • September 2026
| Company | Muthoot Fincorp Limited |
| Issue Opens | Tuesday, September 8, 2026 |
| Issue Closes | Tuesday, September 22, 2026 |
| Issue Size (Tranche V) | ₹700 Crore |
| Base Issue | ₹350 Crore |
| Green Shoe | ₹350 Crore |
| Face Value | ₹1,000 per NCD |
| Minimum Investment | ₹10,000 (10 NCDs) |
| Security | Secured |
| Credit Rating | |
| Highest Coupon | 9.25% p.a. |
| Effective Yield | 9.25% p.a. |
| Listing | BSE Limited |
| Registrar | Integrated Registry Management Services Pvt. Ltd. |
| Lead Manager | Nuvama Wealth Management Ltd. |
| Debenture Trustee | Vardhman Trusteeship Pvt. Ltd. |
| Interest Payment |
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What is the Muthoot Fincorp NCD IPO?
The Muthoot Fincorp Limited NCD IPO is a public issue of secured, redeemable, Non-Convertible Debentures (NCDs) of face value ₹1,000 each. This public offering is Tranche V of the issue, operating under a total approved Shelf Prospectus limit of ₹3,000.00 Crore.
Source: SEBI Muthoot Fincorp Limited – Tranche V Prospectus
Muthoot Fincorp is raising these funds to strengthen its long-term liquidity, optimize borrowing costs, and expand its credit-sourcing book for onward lending. NCDs are ideal for investors seeking predictable, recurring income or wealth compounders who want a regular yield higher than traditional bank deposits.
Important Dates
The indicative timetable for the Tranche V NCD Issue is detailed below:
| Event | Date |
|---|---|
| Issue Opens | Tuesday, September 8, 2026 |
| Issue Closes | Tuesday, September 22, 2026 |
| Basis of Allotment | Indicative post-closing, processed on a FCFS basis |
| Refund Initiation / Unblocking | Within 2-3 Working Days of Allotment |
| Credit of NCDs to Demat Account | Within 2-3 Working Days of Allotment |
| Listing Date on BSE | Indicative within 3-6 Working Days of Issue Closing |
Note: The company reserves the right to close the issue early or extend the subscription window, subject to SEBI regulations.
NCD Issue Details
| Particular | Details |
|---|---|
| Face Value | ₹1,000 per NCD |
| Minimum Application | ₹10,000 (10 NCDs) |
| Multiples | ₹1,000 (1 NCD) thereafter |
| Base Issue Size | ₹350.00 Crore |
| Oversubscription Option | ₹350.00 Crore |
| Total Tranche V Size | ₹700.00 Crore |
| Shelf Limit | ₹3,000.00 Crore |
| Tranche | Tranche V |
| Listing Exchange | BSE Limited |
| Security | Secured |
| Credit Rating | CRISIL AA/Stable and Brickwork AA+/Stable |
| Registrar | Integrated Registry Management Services Pvt. Ltd. |
| Trustee | Vardhman Trusteeship Pvt. Ltd. |
| Lead Manager | Nuvama Wealth Management Ltd. |
| ISIN | Allocated individually per option at the time of allotment |
Interest Rate & Series Details
Muthoot Fincorp has structured 12 distinct series across 24-, 36-, 60-, and 72-month tenors, giving investors options for Monthly, Annual, or Cumulative interest payouts:
| Series | Tenure | Frequency | Coupon Rate (% p.a. | Effective Yield (% p.a. | Maturity Amount (per NCD) |
|---|---|---|---|---|---|
| Series 1 | 24 Months | Monthly | 8.56% | 8.90% | ₹1,000.00 |
| Series 2 | 36 Months | Monthly | 8.75% | 9.10% | ₹1,000.00 |
| Series 3 | 60 Months | Monthly | 8.84% | 9.20% | ₹1,000.00 |
| Series 4 | 72 Months | Monthly | 8.88% | 9.24% | ₹1,000.00 |
| Series 5 | 24 Months | Annual | 8.90% | 8.89% | ₹1,000.00 |
| Series 6 | 36 Months | Annual | 9.10% | 9.09% | ₹1,000.00 |
| Series 7 | 60 Months | Annual | 9.20% | 9.19% | ₹1,000.00 |
| Series 8 | 72 Months | Annual | 9.25% | 9.24% | ₹1,000.00 |
| Series 9 | 24 Months | Cumulative | NA | 8.90% | ₹1,186.20 |
| Series 10 | 36 Months | Cumulative | NA | 9.10% | ₹1,298.91 |
| Series 11 | 60 Months | Cumulative | NA | 9.20% | ₹1,553.17 |
| Series 12 | 72 Months | Cumulative | NA | 9.25% | ₹1,701.14 |
Key Insights:
- Highest Coupon: 9.25% p.a. via Series 8 (72 Months, Annual Payout).
- Best Effective Yield: 9.25% p.a. via Series 12 (72 Months, Cumulative Payout), which yields ₹1,701.14 on maturity per ₹1,000 invested.
- Best option for monthly income: Series 4 offers an effective yield of 9.24% p.a. (8.88% coupon paid monthly) over 72 months, while Series 3 offers 9.20% p.a. effective yield (8.84% coupon paid monthly) over 60 months.
- Best option for long-term compounding: Series 12 converts a ₹10,000 minimum investment to ₹17,011.40 over a 6-year period (72 months).
Investor Category Allocation
To ensure structured fundraising, the Tranche V Issue is allocated across four investor categories:
| Category | Allocation % | Allocation Amount (Max Limit) |
|---|---|---|
| Institutional Investors | 10.00% | ₹70.00 Crore |
| Non-Institutional Investors | 20.00% | ₹140.00 Crore |
| HNIs (High Net Worth Individuals) | 50.00% | ₹350.00 Crore |
| Retail Individual Investors | 20.00% | ₹140.00 Crore |
| Total | 100.00% | ₹700.00 Crore |
Allotment will be processed on a first-come, first-served (FCFS) basis within each category according to the upload date on the stock exchange platform.
Purpose of the Issue
The net proceeds of this Issue will be strictly utilized as per the company’s Objects of the Issue :
- Onward Lending & Debt Servicing (At least 75% of proceeds): Sourced towards onward lending, financing, and for the repayment/prepayment of interest and principal of existing borrowings of the company.
- General Corporate Purposes (Up to 25% of proceeds): Sourced towards routine administrative, operational, and general corporate purposes.
Muthoot Fincorp Overview
- Founded: Incorporated in 1997 .
- Headquarters: Muthoot Centre, TC No 27/3022, Punnen Road, Thiruvananthapuram, Kerala, 695001 .
- Promoters: Promoted by Thomas John Muthoot, Thomas George Muthoot, and Thomas Muthoot.
- Business Model: A non-deposit-taking systemically important NBFC primarily offering personal and business loans secured by gold ornaments and jewelry. These gold loan products meet short-term liquidity needs of individuals and small businesses.
- Branches & Touchpoints: As of June 30, 2026, Muthoot Fincorp operates a highly massive physical footprint consisting of 3,845 branches and 326 processing centers across 25 states and union territories.
- Assets Under Management (AUM): As of March 31, 2026, its consolidated AUM stands at an exceptional ₹73,44,471.93 lakhs (₹73,444.72 Crore), and Standalone AUM stands at ₹56,18,510.03 lakhs (₹56,185.10 Crore).
- Other Verticals: In addition to gold loans, the company provides foreign exchange and domestic money transfer services as a sub-agent. It has also diversified into joint venture real estate developments and owns wind power generation projects in Tamil Nadu.
Financial Performance (Consolidated)
The consolidated financial performance of Muthoot Fincorp Limited reflects massive scale and an extremely strong growth trajectory, particularly in total income and net profit:
| Key Financial Indicators | FY24 (Audited) | FY25 (Audited) | FY26 (Audited) |
|---|---|---|---|
| Total Income | ₹6,554.31 Cr | ₹8,511.57 Cr | ₹11,227.80 Cr |
| Profit After Tax (PAT) | ₹1,047.98 Cr | ₹607.99 Cr | ₹1,847.62 Cr |
| Tangible Net Worth | ₹5,811.02 Cr | ₹6,362.75 Cr | ₹8,218.32 Cr |
| Total Assets | ₹38,703.57 Cr | ₹45,456.09 Cr | ₹67,668.68 Cr |
| Consolidated AUM | ₹53,000 Crore | ₹60,000 Crore | ₹73,444.72 Crore |
Financial Performance Takeaways:
- Remarkable Revenue Expansion: Total income increased from ₹8,511.57 Cr in FY25 to ₹11,227.80 Cr in FY26, showing an exceptional 32% YoY growth.
- Exponential PAT Recovery: Profit after tax rebounded spectacularly from ₹607.99 Cr in FY25 to ₹1,847.62 Cr in FY26, representing an astronomical 204% rise.
- Capital Consolidation: Consolidated net worth grew 29% in FY26 to touch ₹8,218.32 Cr, providing a massive cushion against credit shocks.
Key Financial Ratios (Consolidated)
Note: The ratios below are mathematically calculated from the company’s audited consolidated financials in the Tranche V prospectus:
| Financial Ratio | FY24 | FY25 | FY26 |
|---|---|---|---|
| Return on Equity (ROE) | 18.03% | 9.56% | 22.48% |
| Return on Assets (ROA) | 2.71% | 1.34% | 2.73% |
| Equity Gearing (Asset-to-Net Worth) | 6.66x | 7.14x | 8.23x |
Key Ratios Takeaways:
- Industry-Leading ROE: Return on Equity rocketed to 22.48% in FY26, demonstrating highly efficient utilization of shareholder equity to generate profits.
- Robust Asset Returns: Return on Assets recovered to a healthy 2.73% in FY26, highlighting the high margin spreads characteristic of retail gold loans.
- Optimized Gearing: With assets at 8.23x of Net Worth, the company effectively utilizes debt capital to leverage its nationwide gold loan distribution network.
Credit Rating Analysis
| Agency | Rating | Outlook | Safety & Risk Degree |
|---|---|---|---|
| CRISIL Ratings Limited | AA/Stable | Stable | High degree of safety, very low credit risk |
| Brickwork Ratings India Pvt. Ltd. | AA+/Stable | Stable | High degree of safety, very low credit risk |
What the Rating Means:
A rating of “AA/Stable” or “AA+/Stable” implies a high degree of safety regarding the timely payment of interest and principal obligations. Instruments with these ratings carry very low credit risk, and the ‘Stable’ outlook indicates that the financial health and business model are expected to remain solid in the medium term.
Security Cover
The Tranche V NCDs are secured debt instruments backed by a first charge over the company’s asset book and loan receivables. Under the terms of the issue, Muthoot Fincorp will maintain a security cover of at least 1.00x (100%) of the outstanding NCD principal and accrued interest obligations throughout the tenure of the NCDs. Axis/Vardhman Trustees will monitor compliance to ensure investor assets remain secured by gold receivables.
Peer Comparison
Compared to other gold loan NBFC peers, Muthoot Fincorp stands out as an incredibly efficient player:
- Yield Advantage: Offering coupon rates up to 9.25% p.a. Muthoot Fincorp comfortably outpaces AAA-rated competitors (like Muthoot Finance or Manappuram Finance), which typically offer yields in the range of 8.20% to 8.60% for similar tenors.
- Secured Collateral: Backed by highly liquid, pure gold-collateral loan books, Muthoot Fincorp’s asset risks are much lower than microfinance or unsecured retail lenders.
Pros (Strengths):
- High Predictable Returns: Coupon rates up to 9.25% p.a. comfortably beat bank FDs (which currently hover around 7.00% to 7.50%).
- Secured Asset Class: Backed by short-term, liquid gold loans, meaning defaults are easily recoverable via gold auctions.
- Phenomenal Performance: A massive 204% PAT growth in FY26 showcases superb profitability and financial strength.
- Massive Brand Heritage: Part of the decades-old Muthoot Pappachan Group, ensuring trust and nationwide recognition.
Cons (Risks):
- No Premature Exit with Issuer: No put or call options are available with the company; exit before maturity relies strictly on secondary BSE listing liquidity.
- Gold Price Volatility: Significant drops in global gold prices could impact collateral values and affect loan recovery margins.
NCD vs. Fixed Deposit
| Feature | Muthoot Fincorp NCD | Bank Fixed Deposit |
|---|---|---|
| Returns | Up to 9.25% p.a. | Standard 6.50% – 7.50% p.a. |
| Liquidity | Sellable on BSE post-listing | Premature withdrawal with 1% penalty |
| Risk Profile | Moderately Low (Secured by Gold Assets) | Negligible (DICGC insured up to ₹5 Lakh) |
| Taxation | Taxable under slab; 10% TDS applicable | Taxable under slab; TDS applicable |
| Tradability | Fully Tradable on BSE | Non-tradable |
Taxation on NCD Interest
Interest earned on NCDs is fully taxable under the head “Income from Other Sources” based on your income tax slab.
- TDS: A TDS of 10% is deducted at source under Section 193 of the Income Tax Act.
- TDS Exemption: To receive interest without TDS, eligible resident individuals must submit Form 15G (or Form 15H for senior citizens) to the Registrar, Integrated Registry Management Services Pvt. Ltd., before the record date.
How to Apply for NCD IPO
Only ASBA applications are permitted for subscribing to the NCDs:
- Log in to your Net Banking portal or Demat platform (such as GoldenPi, IndiaBonds, or exchange direct apps).
- Navigate to the “IPO / NCD / Debt” section.
- Select “Muthoot Fincorp Limited NCD IPO Tranche V” and choose your preferred Series (1 to 12).
- Enter Application Details (Minimum ₹10,000 for 10 NCDs).
- Authenticate the UPI mandate or ASBA payment block.
- Upon successful allotment, blocked funds will be debited, and the NCDs will be credited directly to your Demat account within 2-3 working days of allotment.
My Investment Verdict*
My assessment based on risk, returns, liquidity and investor suitability.
Suitable For
- Retirees and income seekers looking for steady monthly income options with yields up to 9.24% p.a.
- Fixed-income investors seeking to lock in yields of up to 9.25% p.a. in a high-safety environment.
- Conservative investors looking to diversify their portfolio beyond traditional bank fixed deposits.
- Investors looking to hold until maturity to maximize compound interest via cumulative options.
Avoid If
- You need high immediate liquidity — listing is assured, but trading volumes in the secondary market can be modest.
- You are looking for equity-like capital appreciation.
- You prefer 100% government-backed, risk-free savings instruments.
My Verdict
The Muthoot Fincorp Limited Tranche V NCD IPO is a highly compelling, rock-solid investment for retail and HNI fixed-income portfolios. Offering interest rates of up to 9.25% p.a. and rated CRISIL AA/Stable, it sits at an optimal sweet spot of risk and reward.
Backed by a nationwide gold-sourcing footprint of 3,845 branches, solid profitability (PAT of ₹1,847.62 Cr), and physical gold collateral, the safety margins here are incredibly high. For retail investors looking to maximize regular income, locking in the 9.24% effective monthly payout (Series 4) or compounding wealth via the 9.25% cumulative yield (Series 12) is an excellent choice. We recommend allocating up to 15-20% of your fixed-income portfolio to this issue.
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Muthoot Fincorp NCD IPO Frequently Asked Questions
A: The minimum application amount is ₹10,000 (10 NCDs of face value ₹1,000 each) and in multiples of ₹1,000 (1 NCD) thereafter.
A: Yes, these NCDs are fully secured by a first charge over the company’s book debts, gold loans, and physical receivables.
A: The highest coupon rate offered is 9.25% p.a. for Series 8 (72 Months, Annual payout). The highest effective yield is also 9.25% p.a. for Series 12 (Cumulative).
A: Yes, the NCDs will be listed on BSE Limited. You can trade them in the secondary market, though trading volumes may be low.
A: The Registrar is Integrated Registry Management Services Pvt. Ltd., and the Debenture Trustee is Vardhman Trusteeship Pvt. Ltd.
Conclusion
The Muthoot Fincorp Limited NCD IPO provides a lucrative gateway for investors to earn steady, market-beating returns. Given its high-safety “AA/Stable” rating, liquid gold-secured collateral, and phenomenal FY26 earnings rebound (+204% PAT), this issue stands out as a highly reliable option. Always align your series selection (monthly vs annual vs cumulative) with your specific financial goals and income needs.
Disclaimer
Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities and municipal debt securities/securitized debt instruments are subject to credit risks, market risks, and default risks, including delay and/or default in payment. Read all the offer-related documents carefully. This blog/article should not be construed as financial advice or as an offer or recommendation to buy or sell any security or any products/services of/on GoldenPi or any product/services of its third-party client(s). For a detailed calculation of YTM, visit our website. T&C’s Apply.
