Muthoot FinCorp eyes market debut with ₹4,000 crore IPO, stock split announced

Muthoot FinCorp IPO: Gold loan-focused non-banking finance company (NBFC) Muthoot FinCorp has announced plans to list on the stock exchanges and raise up ₹4,000 crore crore via an initial public offering (IPO).

In a board meeting on Saturday, the company approved raising up to ₹4,000 crore through a public issue consisting of a fresh issuance of shares.

He said the company, which is currently fully owned by the Muthoot family and has no external private equity investors, is raising fresh equity capital for business growth and not for any investor exit.

"The equity we are raising is for growth. This is growth capital," Varghese said, adding that the company would like to hit the market at the earliest, subject to approvals and market conditions.

In the financial year 2025-26, the non-bank lender posted a net profit of ₹1,640 crore, an increase of 108.38% from ₹787 crore in FY25.

Alongside the public issue plan, the Muthoot board also gave its nod to a stock split, subdividing shares of face value ₹10 into five equity shares of ₹2 each, a move aimed at improving liquidity and retail participation.

The company, which is part of the Muthoot Pappachan Group, has been expanding its lending operations and diversifying its borrowing sources.

It also approved plans to raise up to ₹4,000 crore via public issuance of non-convertible debentures, or NCDs, and an equivalent amount through private placements, in addition to a commercial paper programme with an overall limit of ₹30,000 crore.