Muthoot Mercantile
How this yield compares
About this bond
Muthoot Mercantile is a corporate bond issued by a company to raise debt from investors, currently offering a yield to maturity (YTM) of 10.5%. It pays a coupon of 9.5% and matures on 23 Jan 2027, a remaining tenure of about 6 mo. It is rated BBB, a moderate credit-safety grade. WintWealth lists this bond with a minimum investment of ₹998.
Its 10.5% yield is well above the market average, sitting 88th of 165 comparable Corporate bonds. That lands just under the Corporate median of 10.75%. Against a tenure-matched SBI fixed deposit (5.15%), it pays roughly 5.35 points more - a large gap that only makes sense once you are comfortable with the issuer's credit. Its short 6 mo horizon locks the rate for only a few years, limiting reinvestment risk. Paired with its moderate safety (BBB) rating, that leans toward the safety-first end. Compare it against similar bonds on RightBonds before investing.
Investors comparing this bond often also look at Regency Fincorp (INE964R07101) at 14.5%, Best Capital (INE04UP07170) at 14% and BEST CAPITAL (INE04UP07212) at 13.5%.
Bond details
What you keep after tax
Interest on a listed corporate bond is added to your income and taxed at your slab, so the 10.5% headline is a pre-tax number. Here is the same bond seen from each slab, on ₹1,00,000 held for the remaining 6 mo.
| Your tax slab | Post-tax yield | ₹1,00,000 becomes |
|---|---|---|
| No tax (income under the exemption limit) | 10.50% | ₹1,04,827 |
| 5% slab | 9.97% | ₹1,04,592 |
| 20% slab | 8.40% | ₹1,03,882 |
| 30% slab | 7.35% | ₹1,03,405 |
At a 9.5% coupon, ₹1,00,000 of face value pays about ₹9,500 of interest a year, under the ₹10,000 Section 193 threshold, so no TDS is withheld.
Slab rates only - surcharge and cess are not included, and the figures assume you hold to maturity. Sold on the exchange after 12 months instead, the gain is taxed as long-term capital gains at 12.5%. Not tax advice.
Against a fixed deposit, in rupees
Same ₹1,00,000, same 0.5 years, one in this bond and one in a tenure-matched SBI fixed deposit at 5.15%.
Bond figure compounds the yield annually; the FD compounds quarterly, as a cumulative bank FD does. Both are pre-tax and assume the bond is held to maturity and the issuer pays in full - the BBB credit risk is the reason for the gap.
When you get paid
Interest lands every month, with about 6 payments still to come before 23 Jan 2027, each at the 9.5% coupon rate.
Payment months come from the issuer's schedule. Exact dates within the month, and the amount per payment, depend on the face value of the units you buy - check the term sheet on WintWealth before investing.