Muthoot Fincorp Sets Sights on Rs 4,000 Crore IPO to Fuel Expansion

Muthoot Fincorp plans to raise Rs 4,000 crore through an IPO, doubling its net profit in FY26 compared to FY25. The gold loan-focused lender will issue fresh equity shares for growth. The IPO is subject to approval and market conditions, alongside a stock split and plans to raise more funds.

Muthoot Fincorp has announced ambitious plans to launch an initial public offering (IPO) in a bid to raise Rs 4,000 crore. The board's decision, revealed on Saturday, comes as the company reported a net profit of Rs 1,640 crore for FY26, significantly up from Rs 787 crore in FY25.

The fresh equity issue is poised to drive future expansion, although timelines remain unspecified, contingent on shareholder approval and regulatory compliance. The IPO landscape in FY26 has been relatively inactive compared to the prosperous FY25, characterized by secondary transactions and investor exits, alongside concerns over fresh issuances.

In tandem with the IPO, Muthoot's board has sanctioned a stock split to enhance share liquidity and retail investor involvement. Moreover, the company plans to bolster its financial position by issuing non-convertible debentures (NCDs) and expanding its commercial paper program to an overall limit of Rs 30,000 crore.