Muthoot Fincorp, a prominent non-banking financial company and the flagship entity of the 139-year-old Muthoot Pappachan Group, has announced ambitious fundraising plans, including an Initial Public Offering (IPO) aiming to raise up to ₹4,000 crore. The company's board has given its approval for the proposal, which is contingent on securing shareholder consent, favorable market conditions, and necessary regulatory clearances.
The proposed IPO will constitute a fresh issue of equity shares. In preparation for this, the board has also sanctioned a share split, where each equity share with a face value of ₹10 will be subdivided into five equity shares, each with a face value of ₹2. This strategic move is expected to make the shares more accessible to a wider range of investors.
Diverse Fundraising Initiatives
Beyond the IPO, Muthoot Fincorp is diversifying its funding strategy with several other initiatives:
- Public Issuance of Non-Convertible Debentures (NCDs): The company plans to raise up to ₹4,000 crore through public NCDs, scheduled for the period between July 1, 2026, and June 30, 2027.
- Private Placement of Debt Instruments: An additional ₹4,000 crore is targeted through the private placement of non-convertible debentures, perpetual debt instruments, and subordinated debt, also subject to shareholder approval.
- Commercial Papers: Muthoot Fincorp has approved the issuance of commercial papers with an overall limit of ₹30,000 crore, maintaining a maximum outstanding limit of ₹10,000 crore at any given time.
These decisions come amidst a period where the broader IPO market in FY26 has experienced a slowdown following a record-setting FY25. The company notes that many previous IPOs were secondary transactions, whereas Muthoot Fincorp's offering will be a fresh issue.
Strong Financial Performance in FY26
The fundraising efforts are underpinned by Muthoot Fincorp's robust financial performance. For the fiscal year 2026, the company reported a standalone net profit of ₹1,640 crore, more than doubling its FY25 profit of ₹787 crore.
On a consolidated basis, which includes subsidiaries like Muthoot Microfin and Muthoot Housing Finance, the net profit for FY26 surged by 204% to ₹1,847.62 crore. Consolidated revenue also saw a significant increase of 32%, reaching ₹11,227.80 crore. The company's consolidated assets under management (AUM) stood at an impressive ₹73,448.82 crore, reflecting strong growth and operational efficiency.
The Stock Allotment Committee has been granted the authority to manage the issuance and allotment of these securities as required, signaling the company's readiness to proceed with its comprehensive funding plans.