Muthoot FinCorp, the flagship financial services arm of the Muthoot Pappachan Group, has filed draft papers for an initial public offering (IPO) worth ₹3,000 crore, with the proceeds aimed at supporting lending, business expansion and digital growth. According to the draft prospectus, the proposed issue will consist entirely of fresh shares, although the company may conduct a pre-IPO placement of up to ₹600 crore, which could reduce the size of the fresh issue. Up to 50% of the net issue will be reserved for qualified institutional buyers, at least 15% for high-net-worth individuals and a minimum of 35% for retail investors. The company plans to use the IPO proceeds primarily to strengthen its Tier I capital base and support future lending requirements, while also investing in business expansion and its digital platform. A smaller portion will be used for issue-related expenses. Muthoot FinCorp operates more than 3,800 branches across India and is primarily engaged in gold loans, while also offering business, housing, supply-chain financing and loans against property. The company reported more than a threefold rise in net profit and a 31.8% increase in revenue from operations for the financial year ended March 31. The IPO comes as India’s primary market gains momentum following a slower 2025, although investors continue to scrutinise valuations and business fundamentals closely.
