Muthoot FinCorp Limited Files DRHP with SEBI for IPO

Muthoot FinCorp Limited (MFL), a diversified Non-Banking Financial Company (NBFC) belonging to the Muthoot Pappachan Group, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO).

Through this IPO, the company plans to issue fresh shares worth Rs. 3,000 crores. The proceeds from the fresh issue will be utilized to strengthen the Tier-1 capital base, meet future capital requirements arising from business growth and expansion driven by digital platforms and diversified loan portfolios, and fund onward lending.

Business Model and Offerings:
Muthoot FinCorp Limited is a diversified NBFC with a robust foundation anchored in the gold loan business. The company offers a wide array of products tailored to evolving customer life-stage needs, including gold loans, business loans, loans against property, supply chain financing, digital loans, microfinance, and housing loans, alongside non-fund-based distribution services such as insurance, payments, savings, and other financial services.

As part of the Muthoot Pappachan Group which boasts a trading heritage dating back to 1887 and ventured into the gold loan business in 1939 the company brings over 86 years of rich legacy. Over the past decades, the group has established a trusted and diversified financial services franchise.

Growth and Financial Performance:
According to a CRISIL report, Muthoot FinCorp Limited boasts one of the fastest-growing gold loan Assets Under Management (AUM) among NBFCs in India, recording a CAGR of 59.04% between March 31, 2024, and March 31, 2026. Backed by a trusted brand, customer loyalty, repeat usage, an extensive physical branch network, and its digital platform ‘Muthoot FinCorp ONE’, the company has maintained its strong foothold in the gold loan sector for over two decades.

Strengthening its core gold loan business alongside its digital platform ‘Muthoot FinCorp ONE’, the company has successfully transformed into a broad-based financial services provider encompassing business and personal finance. Its retail and MSME lending portfolio covers loans against property, business loans, supply chain finance, housing loans, and digital loans.

The ‘Muthoot FinCorp ONE’ platform functions as an in-house digital application enabling customers to seamlessly access company products, group offerings, and third-party lending services end-to-end digitally. While utilizing a unified technology stack to ensure a frictionless customer experience, the individual business verticals operate with dedicated leadership, underwriting, and collection teams.

Key Milestones and Financials:
As of March 31, 2026, Muthoot FinCorp Limited’s AUM stood at Rs. 734,447.19 million, supported by a pan-India network of 5,610 branches and 4.26 million digital users. Over the past three financial years ending March 31, 2026, the company has served over 8.22 million unique customers. As of March 31, 2026, it had over 2.85 million active unique customers with loan accounts, of which 1.73 million were new loan account holders acquired in fiscal 2026.

Demonstrating disciplined expansion and robust financial performance across economic cycles, the company’s consolidated revenue from operations rose to Rs. 11,203.81 crores in fiscal 2026, compared to Rs. 8,497.69 crores in fiscal 2025. Furthermore, the annual consolidated profit surged significantly from Rs. 607.90 crores in fiscal 2025 to Rs. 1,847.62 crores in fiscal 2026, highlighting a substantial leap in profitability.

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, JM Financial Limited, and SBI Capital Markets Limited are acting as the book-running lead managers for the issue.