Muthoot Fincorp files draft papers with Sebi for Rs 3,000 crore IPO

Muthoot Fincorp Ltd, part of the Muthoot Pappachan Group, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) comprising a fresh issue of equity shares worth Rs 3,000 crore.

According to the DRHP, the company plans to use the proceeds from the fresh issue to augment its Tier-I capital base. The funds will be used to meet future capital requirements, including those arising from onward lending and the growth and expansion of its business, including its digital platform and diversified lending portfolio.

Muthoot Fincorp is a diversified non-banking financial company (NBFC) with gold loans as its flagship business. Its portfolio also includes business loans, loans against property, supply chain financing, digital loans, microfinance and housing loans. The company also provides distribution and other financial services across insurance, payments, savings and related offerings.

According to the CRISIL Report cited in the DRHP, its gold loan assets under management (AUM) grew at a compound annual growth rate (CAGR) of 59.04 per cent between March 31, 2024 and March 31, 2026, making it the fastest-growing gold loan AUM among its peers during the period.

Muthoot Fincorp said its digital platform, Muthoot FinCorp ONE, enables customers to access the loan journey digitally across its products, certain Muthoot Pappachan Group products and third-party lending offerings.

As of March 31, 2026, the company had an AUM of Rs 73,444.72 crore and operated through 5,610 branches across India.

Muthoot Fincorp reported consolidated revenue from operations of Rs 11,203.81 crore in FY26, compared with Rs 8,497.69 crore in FY25. Consolidated profit for the year stood at Rs 1,847.62 crore in FY26, up from Rs 607.90 crore a year earlier.

Muthoot Fincorp has evolved over 86 years since it co-founded a gold loan business in 1939 as part of the group's heritage trading business. The Muthoot Pappachan Group traces its roots to 1887.

Kotak Mahindra Capital Company, Morgan Stanley India Company, JM Financial and SBI Capital Markets are the book-running lead managers to the issue.