Muthoot FinCorp files for ₹3,000 crore IPO to fund growth, lending

The non-banking financial company plans to use proceeds to strengthen Tier I capital, support lending and expand its digital platform

Indian non-banking financial company Muthoot FinCorp has filed for an initial ​public offering in Mumbai to raise ₹3,000 crore ($314.59 million), according to a draft prospectus dated Wednesday.

 

The offering consists entirely of fresh issue of shares, according to the draft filing. The company ‌may undertake a pre-IPO placement of ​up to 6 billion ​rupees, which would reduce the size of the fresh issue. 

Up ​to 50 per cent of the net issue will be reserved for qualified institutional buyers, at least 15 per cent for high-net-worth individuals and at least 35 per cent for retail investors. 

The company intends to channel the ​IPO funds toward strengthening its Tier I capital base for future lending ‌needs, while also fueling business growth and digital platform expansion, with ​a smaller share earmarked for issue-related expenses. 

 

Muthoot FinCorp, the flagship financial services arm of Muthoot Pappachan Group, is primarily engaged in gold loans but also ‌offers loans for business, housing, ​supply chain financing, loans against ‌property, among others. 

India's IPO market has picked up after ‌a slower 2025, drawing a diverse mix of issuers, from auto-parts ​manufacturer Dhoot Transmission to logistics firm Shiprocket and dairy player Milky Mist, even as investors remain selective on valuations and ​business fundamentals. 

Muthoot FinCorp, which operates more than 3,800 branches across India, reported a more than three-fold jump in ‌net profit and a 31.8 per cent increase in total revenue from operations ‌for the year ended March 31. 

Kotak Mahindra Capital, Morgan Stanley India, JM Financial and SBI Capital Markets are book-running lead managers for the IPO. 

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