Muthoot Finance injects equity into Muthoot Money to fund growth

Muthoot Finance Limited has completed the allotment of 3.25 lakh equity shares in its subsidiary, Muthoot Money Limited, reinforcing its capital base and supporting the company’s growth trajectory.

The

funds raised through the allotment will be deployed by Muthoot Money for business funding, general corporate purposes, and repayment of existing loans, the company said in an exchange filing. The move is expected to improve the subsidiary’s capital adequacy ratio.

“As the sole shareholder, Muthoot Finance continues to back Muthoot Money’s strategic initiatives and ensure it remains well-capitalised for growth,” the company noted. Several Muthoot Finance directors also serve on Muthoot Money’s board, providing guidance and oversight.

Also Read: Muthoot Finance Q2 Results: Earnings beat estimates with highest ever gold loan AUM

Over the past three financial years, Muthoot Money has demonstrated robust growth, with turnover rising from ₹446.88 million in FY23 to ₹4,299.43 million in FY25, reflecting the subsidiary’s expanding business footprint.

Shares of Muthoot Finance Ltd closed at ₹3,794.70 on Tuesday, up ₹58.20 or 1.56%. The parent company recently reported an 87.4% year-on-year jump in net profit to ₹2,345 crore for Q2 FY26, with net interest income rising 58.5% to ₹3,992 crore, supported by strong performance in its gold loan portfolio.