Muthoot Fincorp Ltd, part of the Muthoot Pappachan Group, has filed draft papers with markets regulator Sebi to raise Rs 3,000 crore through an <a href="https://www.mid-day.com/business/business-news/article/indian-firms-secure-rs-19-lakh-crore-through-ipos-in-fy26-23644071" target="_blank" rel="none noopener">Initial Public Offering (IPO) </a>to strengthen its capital base.
The IPO is entirely a fresh issue of equity shares, according to the Draft Red Herring Prospectus (DRHP) filed on Wednesday.
Proceeds from the fresh issue will be used to augment the company's Tier-I capital base to meet future capital requirements, including funding onward lending and supporting the growth and expansion of its business.
Muthoot Fincorp, is part of the Muthoot Pappachan Group, whose heritage dates back to 1887.
It is a diversified <a href="https://www.mid-day.com/business/business-news/article/tata-capital-acquires-over-88-per-cent-stake-in-keralabased-yogloans-enters-gold-loan-business-23639572" target="_blank" rel="none noopener">Non-Banking Financial Company (NBFC), with gold loans</a> as its flagship business. Its portfolio also includes business loans, loans against property, supply chain financing, digital loans, microfinance and housing loans, among others.
The company has been engaged in the gold loan business for over two decades and operates through a pan-India branch network as well as its digital platform, Muthoot FinCorp ONE.
As of March 31, 2026, the company had assets under management (AUM) of Rs 73,444.72 crore and a network of 5,610 branches across India. Its digital platform had 4.26 million users.
Muthoot Fincorp's gold loan AUM grew at a compound annual growth rate (CAGR) of 59.04 per cent between March 2024 and March 2026, making it the fastest-growing among its peers, draft papers noted citing Crisil report.
On the financial front, the company's consolidated profit increased to Rs 1,847.62 crore in <a href="https://www.mid-day.com/business/business-news/article/air-india-air-india-express-fy26-net-loss-more-than-doubles-to-rs-22238-crore-revenue-declines-9-per-cent-23641972" target="_blank" rel="none noopener">FY26</a> from Rs 607.90 crore in the previous fiscal. Consolidated revenue from operations rose to Rs 11,203.81 crore from Rs 8,497.69 crore in FY25.
Kotak Mahindra Capital Company, Morgan Stanley India Company, JM Financial and SBI Capital Markets are the book running lead managers to the issue.
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Proceeds from the fresh issue will be used to augment the company's Tier-I capital base to meet future capital requirements, including funding onward lending and supporting the growth and expansion of its business

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

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