Muthoot Finance to dilute 5% stake

Muthoot Finance is looking at diluting five per cent stake to achieve the requirement of minimum 25 per cent public shareholding.

Besides, the company expects its gold loan assets under management (AUM) to grow 10-15 per cent from the current around Rs 23,743 crore till August. “We had some setback due to the RBI regulation. But now after the Rao committee (to study issues in gold loan business) report things are encouraging,” said George M George, executive director, Muthoot Group. The issuance of equity shares could be done through public issue, rights issue, private equity or private placement or any other mode provided by Sebi.

The dilution might happen this fiscal, said George.