1:5 Stock Split: Muthoot FinCorp Limited approves Rs 4,000 crore IPO and multiple fundraising plans

Stock Split Update: Muthoot FinCorp Limited has approved plans to raise up to Rs 4,000 crore through an initial public offering (IPO) of equity shares, as the gold loan-focused NBFC looks to strengthen its capital base amid strong earnings growth.

The proposal was cleared by the company’s board during a meeting held on May 16 and remains subject to shareholder approval, regulatory clearances and prevailing market conditions.

IPO to consist of fresh equity issue

According to the company, the proposed IPO will comprise a fresh issue of equity shares with a face value of Rs 10 each.

The IPO announcement comes after a sharp improvement in the company’s financial performance during FY26. Muthoot FinCorp reported consolidated net profit of Rs 1,848 crore for FY26, significantly higher than Rs 608 crore reported in the previous financial year.

Muthoot FinCorp Limited is among India’s major gold-focused non-banking financial companies and offers gold loans along with other retail financial services.

Board clears 1:5 stock split

Alongside the IPO proposal, the board also approved a stock split under which each existing equity share with a face value of Rs 10 will be subdivided into five equity shares with a face value of Rs 2 each.

The company said the move is aimed at improving liquidity and increasing retail investor participation. Necessary amendments to the memorandum of association were also approved as part of the proposal.

NCD fundraising plans approved

The board further approved plans to raise up to Rs 4,000 crore through public issuance of non-convertible debentures (NCDs) between July 1, 2026 and June 30, 2027.

Additionally, the company cleared another proposal to mobilise up to Rs 4,000 crore through private placement of NCDs, perpetual debt instruments and subordinated debt, subject to shareholder approval.

The Stock Allotment Committee has been authorised to oversee issuance and allotment-related decisions for the proposed fundraising exercises.

Commercial Paper Limit Increased

Muthoot FinCorp Limited also approved fundraising through commercial papers with a total issuance limit of Rs 30,000 crore and a maximum outstanding limit of Rs 10,000 crore at any point in time.

Q4 FY26 Performance Remains Strong

The company reported strong operational performance during FY26.

Its standalone business reported assets under management (AUM) of Rs 56,185.10 crore as of March 2026, while revenue stood at Rs 8,364.28 crore and profit after tax came in at Rs 1,640.21 crore.

During Q4 FY26, consolidated profit after tax rose 204 per cent year-on-year to Rs 664.03 crore, while revenue increased 32 per cent to Rs 3,355.97 crore.

The standalone entity reported gross non-performing assets (GNPA) of 1.03 per cent and net non-performing assets (NNPA) of 0.57 per cent. Return on assets (ROA) improved by 121 basis points to 4.16 per cent.

Thomas John, Chairman and Managing Director of Muthoot FinCorp Limited, said the company remains focused on building a future-ready institution while balancing scale, innovation and long-term value creation.

He added that the company would continue strengthening customer relationships, expanding access to financial services and embracing technology-led growth initiatives across the country.