Muthoot Fincorp board approves ₹4,000 crore IPO, share split and fundraising plans

Muthoot Fincorp Ltd on Saturday (May 16) said its board has approved raising funds through an initial public offering (IPO) of equity shares aggregating up to ₹4,000 crore, subject to shareholder approval.

The proposed IPO will comprise a fresh issue of equity shares with a face value of ₹10 each. The company said the issue is subject to market conditions, regulatory approvals and other applicable clearances.

The board also approved the subdivision of each equity share of face value ₹10 into five equity shares of face value ₹2 each, fully paid-up, along with consequential alteration of the memorandum of association.

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In addition, the company approved raising funds through public issuance of non-convertible debentures (NCDs) of up to ₹4,000 crore for the period from July 1, 2026, to June 30, 2027.

The board further approved raising up to ₹4,000 crore through private placement of non-convertible debentures, perpetual debt instruments and subordinated debt, subject to shareholder approval. The Stock Allotment Committee has been authorised to exercise powers related to the issue and allotment of securities from time to time.

Muthoot Fincorp also approved raising funds through the issuance of commercial papers with an overall issuance limit of ₹30,000 crore and a maximum outstanding limit of ₹10,000 crore at any point in time.

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The non-bank lender reported a net profit of ₹1,640 crore for FY26, more than double that of the ₹787 crore in FY25.

The IPO activity is very lull in FY26, after a very busy FY25, where companies raised record amounts. However, most of the IPOs were secondary transactions where existing investors were exiting, and concerns were also raised about fresh issuances.