Indian gold loan lender Muthoot FinCorp files for USD314m IPO

Bengaluru, India: Indian non-banking financial firm Muthoot FinCorp has submitted paperwork for a public stock offering in Mumbai, aiming to raise 30 billion rupees (approximately USD314.59 million), according to a draft prospectus released on Wednesday. The IPO will primarily involve the sale of new shares, with the potential for a pre-IPO placement of up to 6 billion rupees, which would reduce the size of the fresh issue.

At least 50% of the net proceeds will be set aside for qualified institutional investors, while at least 15% will be allocated for high-net-worth individuals and at least 35% for retail investors. The company plans to use the IPO funds to bolster its Tier I capital for future lending, support business expansion, and enhance its digital platform, with a smaller portion reserved for IPO-related expenses.

Muthoot FinCorp, the flagship financial services unit of the Muthoot Pappachan Group, primarily offers gold loans but also provides loans for business, housing, supply chain financing, property loans, and other financial services. The Indian IPO market has seen a resurgence after a slower pace in 2025, attracting a range of issuers, including auto-parts manufacturer Dhoot Transmission, logistics company Shiprocket, and dairy company Milky Mist, despite investors' cautious approach to valuations and business fundamentals.

Muthoot FinCorp, which operates over 3,800 branches across India, reported a more than threefold increase in net profit and a 31.8% rise in total revenue for the fiscal year ending March 31. The IPO is being managed by Kotak Mahindra Capital, Morgan Stanley India, JM Financial, and SBI Capital Markets.