A- | Acuite Ratings And Research Limited NCD Senior Secured Bond
Muthoot Mercantile Ltd.
ISIN: INE05F407EC8
11.40%
YTM
₹9,842.64
Minimum investment
Monthly
Payout
25 Mar 2029
Maturity
10.25%
Coupon Rate
₹10,000
Face Value
Currently subscribed50 Units available
0% Sold
11.40% / +115 bpsYTM vs coupon
yield above stated coupon
98.7072 / 98.4264Clean / dirty price
Excluding / including accrued interest
About the Issuer
Muthoot Fincorp Limited is an RBI-registered NBFC-ML and part of the Muthoot Pappachan Group. It is a prominent gold-loan lender with 3,747 branches across 25 states/UTs as of 30/06/2025, and also offers MSME, salaried, money transfer, forex, insurance and mutual fund distribution services.
Debenture trustee
Mitcon Trusteeship Services Limited
Issuance date
25 Sep 2026
Key terms
8.80% fixed monthly coupon to Dec-2028.
1.00x receivables cover over secured obligations.
Large gold-loan NBFC with 3,747 branches.
Returns & Cashflow
Units
1
Monthly Interest PayoutPrincipal Paid at Maturity
₹9,842.64Principal Invested
₹2,474.05Interest earned
₹12,474.05Final Payout
Interest Payout Schedule
Interest payout schedule for selected units, with payout date, interest amount, and principal amount.
Payout Date
Interest (₹)
Principal (₹)
25 Nov 2026
₹87.05
--
25 Dec 2026
₹84.25
--
25 Jan 2027
₹87.05
--
25 Feb 2027
₹87.05
--
25 Mar 2027
₹78.63
--
25 Apr 2027
₹87.05
--
25 May 2027
₹84.25
--
25 Jun 2027
₹87.05
--
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18.68CRAR
25States/UTs
15.17Tier I CAR
3.74Tier II CAR
38267.73 CrTotal Assets
₹567.62 CrPAT
₹5,384.07 CrNet worth
Financial Trend
YoY +19.5% ↑
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Issuer and structure highlights
Market Position
MFL is part of MPG, identified by CRISIL as the second-largest NBFC gold-finance player.
Gold Loan Scale
Gold loans are the largest group segment and MFL's core portfolio remains sizeable.
Branch Reach
3,747 branches across 25 states/UTs provide deep physical distribution.
Asset Quality
CRISIL cites healthy asset quality in the gold-loan book, with GNPA around 1.5% at Jun-25.
Liquidity
CRISIL assessed liquidity as strong, with positive ALM gaps up to one year.
Capitalisation
Standalone CRAR and Tier I ratios remain above the issue covenant and RBI minimum.
Key Risks
Regional Focus
South India still accounts for a high share of branches and the gold-loan portfolio.
Non-Gold Books
CRISIL monitors asset quality and seasoning risks in microfinance and other non-gold segments.
Gearing Risk
Adjusted gearing above current thresholds is a rating sensitivity factor.
Security Recovery
Recovery depends on value and timely sale of hypothecated property after enforcement.
Bullet Maturity
Principal repayment is concentrated on the final maturity date in Dec-2028.
Regulatory Items
RBI imposed a small monetary penalty in Sep-25, which the company says was remitted.
Sign up to view Strengths & Risk
Summarised from the issuer's disclosures and the rating rationale. Read the full offer document and rating rationale before investing.
CRISIL AA Rating1.00x security coverManaged assets 42,923 Cr3,747 branches
A-
Rating rationale summary
CRISIL AA Rating reflects strong gold-loan market position, improving capitalisation and earnings, offset by concentration and non-gold risks.
Summary points
MPG is second-largest NBFC gold-finance player.
Liquidity assessed as strong by CRISIL.
South India concentration remains a weakness.
Outlook implications
Positive outlook reflects expected improvement in business risk profile, supported by gold-loan market position, AUM growth, profitability and non-gold asset quality.
Implications for investors
Positive outlook indicates CRISIL expects business risk profile to improve, supported by gold-loan position, AUM growth and better profitability and asset quality in non-gold portfolios.
Monthly coupon and bullet principal at Dec-2028 require monitoring of liquidity and ALM coverage through the tenor.
Watch for: Non-gold asset quality, South concentration, gearing above 8x, RoMA below 2%, liquidity and ALM.
Rating Drivers
Market Position
Positive
2nd gold-fin player
Gold Loan Book
Positive
Gold AUM Rs. 32196 Cr
Capitalisation
Supportive
CRAR 18.68%
Asset Quality
Supportive
GNPA 1.5% Jun-25
Liquidity
Strong
Rs. 2138 Cr liquidity
Concentration
Monitored
South share 56%
How this issuer compares to peers
Benchmark yield, balance-sheet strength, and risk indicators against similar issuers to make the credit case easier to validate.
Where it stands out
Large gold-loan NBFC with national branch reach and positive CRISIL outlook.
Gold Loan NBFC Secured NCD AA Rating Monthly CouponCRISIL cites established gold-finance position, strong liquidity and improving earnings while monitoring concentration and non-gold portfolio risks.
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Invest
Selected investment units: 1
Trade & Settlement
Settlement date
15 Oct 2026
Orders placed after 4 PM will be executed on the next business day. Weekends and exchange holidays are skipped.
Totals (For Selected Units)
Price per Unit
₹9,842.64
Investment amount
₹9,842.64
Total Interest
₹2,474.05
Total Receivable
₹12,474.05
Regulatory Assurance Panel
Debenture Trustee
General Information Document
Key Information Document
Rating Letter
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