Gold lender Muthoot FinCorp files DRHP for ₹3,000 crore fresh-issue IPO
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Gold lender Muthoot FinCorp has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise ₹3,000 crore through an initial public offering, as the non-banking financial company looks to strengthen its capital base and fund future growth.
The company, which filed the IPO papers on August 12, plans to raise the entire amount through a fresh issue of equity shares, with no offer for sale (OFS) component. The shares are proposed to be listed on the NSE and BSE.
Muthoot FinCorp plans to use the net proceeds from the fresh issue to augment its Tier-I capital base. The funds will help the company meet future capital requirements, including supporting onward lending and financing the expansion of its business.
Under the proposed issue structure, qualified institutional buyers will be allotted up to 50% of the offer, while retail investors will have a reservation of up to 35% and non-institutional investors at 15%.
Gold loans remain core business
Incorporated in June 1997, Muthoot FinCorp is the flagship company of the Muthoot Pappachan Group and operates as a diversified NBFC, with gold loans forming the core of its business.
The company caters largely to underserved households and small businesses and offers a range of financial products, including gold loans, business loans, loans against property, supply chain finance, digital loans, personal loans and housing loans. It also provides insurance, payments, savings and other financial services.
Muthoot FinCorp has a network of more than 3,800 branches across India, giving it a significant presence in semi-urban and rural markets.
The company's financial performance improved sharply in FY26. Total income rose 32% to ₹11,227.80 crore in FY26 from ₹8,511.57 crore in FY25, while profit after tax more than tripled to ₹1,847.62 crore from ₹607.99 crore during the same period.
Its assets increased to ₹67,668.69 crore as of March 31, 2026, from ₹45,456.09 crore a year earlier. Net worth stood at ₹7,151.65 crore, compared with ₹5,402.62 crore in FY25, while total borrowings increased to ₹46,067.52 crore from ₹29,438.35 crore.
Expanding beyond gold lending
The IPO filing comes shortly after Muthoot FinCorp received a perpetual authorised dealer category-II (AD-II) forex licence from the Reserve Bank of India. The licence allows the company to offer a broader range of regulated foreign exchange services, including currency exchange, multi-currency forex cards, Liberalised Remittance Scheme remittances, family maintenance and trade remittances.
The company said the licence will enable it to expand its forex network and improve access to regulated foreign exchange services for retail customers, MSMEs, corporates, students, travellers and NRIs.