Business
Muthoot FinCorp Eyes Market Listing to Fund Growth
Muthoot FinCorp plans to raise up to Rs 4,000 crore through an initial public offering, with the company expected to dilute at least 10 per cent stake as part of the listing process.
Gold loan-focused non-banking financial company Muthoot FinCorp is likely to dilute a minimum 10 per cent stake through its proposed initial public offering (IPO), according to senior company officials.
The company’s board on Saturday approved plans to raise up to Rs 4,000 crore through the IPO, which will include a fresh issue of equity shares. The fundraising remains subject to regulatory approvals and market conditions.
Speaking in an interview, Shaji Varghese, Chief Executive Officer of Muthoot FinCorp, said regulations require a minimum dilution of 10 per cent stake.
“As per regulation, also, a minimum of 10 per cent is to be diluted. Beyond that, it will depend on valuation,” Varghese said.
The company indicated that proceeds from the IPO will be used to support future growth plans and strengthen business expansion.
Muthoot FinCorp is one of India’s prominent NBFCs in the gold loan segment, offering secured lending services against gold jewellery along with other financial products.
The proposed public issue comes amid growing activity in India’s financial services and NBFC sector, with companies increasingly tapping capital markets to raise funds for expansion and balance sheet strengthening.
Industry analysts say investor interest in gold loan companies has remained relatively strong due to the sector’s steady demand, secured lending model, and expanding rural and semi-urban customer base.
The timing, valuation, and final structure of the IPO are expected to depend on broader market conditions and investor sentiment closer to the launch.