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Muthoot Finance NCD IPO September 2023 Details

Muthoot Fincorp NCD Get Up to 9.44% Interest Rate on Your Investment

Muthoot Finance is a leading non-banking financial company (NBFC) in India. It is known for its gold loan business.

What is Muthoot Finance NCD?

Muthoot Finance NCD is a non-convertible debenture issued by Muthoot Finance Limited, a leading gold loan NBFC in India. NCDs are debt instruments issued by companies to raise capital. They are similar to bonds, but cannot be converted into shares of the company.

Muthoot Finance NCDs are secured, which means that they are backed by the company’s assets. This gives investors a higher degree of protection in the event of a default.

Muthoot Finance NCDs are offered in a variety of tenures and interest rates. Investors can choose the NCD that best suits their investment needs.

Muthoot Finance NCD IPO: Get Up to 9.44% Interest Rate on Your Investment

Issue OpenSeptember 21, 2023 – October 6, 2023
Security NameMuthoot Finance Limited
Security TypeSecured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base)Rs 100.00 Crores
Issue Size (Shelf)Rs 2,600.00 Crores
Issue PriceRs 1000 per NCD
Face ValueRs 1000 each NCD
Minimum Lot Size10 NCD
Market Lot1 NCD
Listing AtBSE
Credit Rating[ICRA] AA+/Stable by ICRA Limited
Tenor24, 36, and 60 Months
SeriesSeries I to VII
Payment FrequencyMonthly and Annually
Basis of AllotmentFirst Come First Serve Basis
Debenture Trustee/sIdbi Trusteeship Services Ltd.

Muthoot Finance NCD September 2023 – Options and Coupon Rates

OptionTenureInterest PaymentCoupon RateEffective YieldMaturity Amount
Series 136 MonthsMonthly7.75%8.75%INR 1,000
Series 260 MonthsMonthly7.75%8.75%INR 1,000
Series 324 MonthsAnnual7.75%8.75%INR 1,000
Series 436 MonthsAnnual8.00%9.00%INR 1,000
Series 560 MonthsAnnual8.00%9.00%INR 1,000
Series 636 MonthsNANA9.00%INR 1,259
Series 760 MonthsNANA9.00%INR 1,469

Benefits of Investing in Muthoot Finance NCD IPO

There are several benefits to investing in Muthoot Finance  NCD IPO:

  • Attractive interest rates: Muthoot Finance is offering attractive interest rates on its new NCD issue, ranging from 7.75% to 9.44%, depending on the tenor of the NCDs. This is higher than the interest rates offered by most banks on their fixed deposits.
  • AA+ credit rating: Muthoot Finance has a strong credit rating of AA+ from ICRA. This indicates that the company is in a good financial position and is likely to be able to meet its debt obligations.
  • Secured NCDs: The NCDs issued by Muthoot Finance are secured, which means that they are backed by the company’s assets. This gives investors a higher degree of protection in the event of a default.
  • Liquidity: Muthoot Finance NCDs are listed on the stock exchange, which means that they can be easily traded on the secondary market. This provides investors with the flexibility to exit their investment early if needed.
  • Tax benefits: The interest income earned on Muthoot Finance NCDs is taxed at a lower rate than other income types, such as salary income.

How to Invest in Muthoot Finance NCD

Muthoot Fincorp NCD is typically issued through public issues. Investors can subscribe to the NCDs through brokers or directly with the company.


Muthoot Finance NCD is a good investment option for investors who are looking for a high-yielding, fixed-income investment. The NCD is relatively safe, as they are backed by the assets of the company. Investors can choose the tenure and interest payment option that best suits their needs.

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