Muthoot Fincorp files draft papers for ₹3,000-crore IPO to boost capital base

Muthoot Fincorp Ltd, a subsidiary of the Muthoot Pappachan Group, has submitted draft papers to the Securities and Exchange Board of India (Sebi) to launch an IPO worth Rs 3,000 crore. The aim is to bolster its capital resources, as per the Draft Red Herring Prospectus (DRHP) released on Wednesday.

The IPO is a fresh issue of equity shares, not a rights issue or bonus issue. The proceeds will primarily be utilized to boost Muthoot Fincorp's Tier-I capital base, ensuring it meets future capital needs. These include financing onward lending and fueling the company's growth and expansion across various business sectors.

Muthoot Fincorp is part of a conglomerate that has been in existence since 1887. The conglomerate is a diversified Non-Banking Financial Company (NBFC) with gold loans as its core business. Its other offerings include business loans, loans against property, supply chain financing, digital loans, microfinance, and housing loans.

The gold loan business is a pivotal part of Muthoot Fincorp's portfolio, with the company operating in this segment for over two decades. Its operations span across the nation, through a widespread network of branches and its digital platform, Muthoot FinCorp ONE. As of March 31, 2026, Muthoot Fincorp's assets under management (AUM) totaled ₹73,444.72 crore, with a digital platform user base of 4.26 million.

The company's growth in the gold loan segment was particularly remarkable, as per the draft papers. Between March 2024 and March 2026, the AUM in this segment grew at a compound annual growth rate (CAGR) of 59.04 per cent, making it the fastest-growing among its competitors. This growth was cited from a Crisil report.

Financially, Muthoot Fincorp reported a significant increase in its consolidated profit, which rose to ₹1,847.62 crore in fiscal year 2026 (FY26) from ₹607.90 crore in the previous fiscal year (FY25). Similarly, consolidated revenue from operations expanded from ₹8,497.69 crore in FY25 to ₹11,203.81 crore in FY26. The book running lead managers for this IPO are Kotak Mahindra Capital Company, Morgan Stanley India Company, JM Financial, and SBI Capital Markets.