Muthoot FinCorp Ltd's Board of Directors approved an initial public offering comprising a fresh issue of equity shares aggregating up to ₹4,000 crore. According to reports from The Hindu BusinessLine, Business Standard, and CNBC TV18, the gold loan-focused non-bank lender's IPO will comprise a fresh issue of equity shares which can be deployed for future growth. The decision for an IPO was taken at a board meeting on Saturday, with the issue subject to shareholder approval, market conditions and regulatory clearances. The non-banking finance company also green-lighted the subdivision of each equity share of face value ₹10 each into 5 equity shares of face value ₹2 each, along with consequential alteration of the Memorandum of Association.
The NBFC is planning to raise up to ₹4,000 crore each via public issue of Non-Convertible Debentures (NCDs) and private placement of NCDs/PDIs/Subordinated Debts. As reported by The Hindu BusinessLine, Business Standard, and CNBC TV18, MFL's Board also approved raising funds by way of issue of Commercial Papers with an overall issuance limit of ₹30,000 crore and a maximum outstanding limit, at any point in time, of ₹10,000 crore. The company has specifically approved raising funds through public issuance of non-convertible debentures (NCDs) of up to ₹4,000 crore for the period from July 1, 2026, to June 30, 2027. The Stock Allotment Committee has been authorised to exercise powers related to the issue and allotment of securities from time to time.
MFL reported a robust 204 per cent year-on-year jump in fourth-quarter standalone net profit to ₹584 crore, up from ₹192 crore in the year-ago quarter. According to reports from The Hindu BusinessLine, Business Standard, and CNBC TV18, the company's net profit for FY26 reached ₹1,640 crore, more than double the ₹787 crore in FY25. This strong financial performance has provided the foundation for the company's ambitious fundraising plans across multiple debt instruments and has boosted the company's financial outlook significantly.
The IPO activity is currently very lull in FY26, after a very busy FY25 where companies raised record amounts, with most of the IPOs being secondary transactions where existing investors were exiting. As reported by Business Standard and CNBC TV18, the stock split is generally aimed at improving liquidity and retail participation. The company's decision to proceed with the IPO reflects its confidence in future growth prospects and its strategy to diversify its capital structure through both public and private funding sources, despite concerns raised about fresh issuances in the current market environment.
