Muthoot Fincorp Approves Rs 4,000 Crore IPO Plan Alongside Stock Split and Debt Fundraising

Mumbai | 18 May 2026 

Muthoot Fincorp, the gold loan-focused non-banking financial company, has approved plans to raise up to Rs 4,000 crore through an initial public offering of fresh equity shares. The board cleared the proposal at its meeting on 17 May 2026, alongside a stock split and a series of debt fundraising measures. 

What Did the Muthoot Fincorp Board Approve? 

The board approved a fresh equity issue of up to Rs 4,000 crore, subject to shareholder approval, market conditions and regulatory clearances. Each equity share with a face value of Rs 10 will be subdivided into five shares of Rs 2 each. The company also cleared the consequential alteration of its memorandum of association. 

How Strong Were the FY26 Financials? 

Muthoot Fincorp reported consolidated net profit of Rs 1,848 crore for FY26, compared with Rs 608 crore in the previous financial year. The jump in profitability sets the backdrop for the company’s decision to tap public markets. 

What Are the Debt Fundraising Plans? 

Beyond the IPO, the board cleared three separate debt routes. 

• Public issuance of non-convertible debentures of up to Rs 4,000 crore between 1 July 2026 and 30 June 2027. 

• Private placement of non-convertible debentures, perpetual debt instruments and subordinated debt of up to Rs 4,000 crore, subject to shareholder approval. 

• Commercial paper issuance with an overall limit of Rs 30,000 crore and a maximum outstanding of Rs 10,000 crore at any point. 

The Stock Allotment Committee has been authorised to handle the issue and allotment of securities. 

About Muthoot Fincorp 

Muthoot Fincorp is among India’s major gold loan-focused non-banking financial companies. The lender offers gold loans and other retail financial services. 

The IPO, stock split and debt programmes remain subject to shareholder and regulatory approvals. The company has not disclosed a timeline for the public issue or use of proceeds. 

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