Muthoot Fincorp plans ₹4,000-crore IPO, board approves stock split

Muthoot Fincorp's board also cleared plans for NCD issuances, private placements, and a commercial paper programme with a limit of Rs 30,000 crore

Muthoot Fincorp on Saturday said its board had approved plans to raise up to ₹4,000 crore through an initial public offering (IPO). The proposed IPO will comprise a fresh issue of equity shares with a face value of ₹10 each, the company said in a statement. It added that the proceeds may be used for future growth.

 

The company said the issue is subject to shareholder approval, market conditions, regulatory clearances, and other applicable approvals. It did not disclose a timeline for the offering.

 

The board also approved a stock split, subdividing equity shares with a face value of ₹10 into five shares of ₹2 each.

 

Muthoot Fincorp reported a net profit of ₹1,640 crore for FY26, compared with ₹787 crore in FY25.

 

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

 

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