Muthoot Finance Boosts Stake in Belstar Microfinance to 66.13%

On April 17, 2024, Muthoot Finance informed the stock exchanges that the company had acquired additional shares of Belstar Microfinance Ltd.

Details of the Acquisition 

Muthoot Finance stated following the Board’s decision to acquire an additional stake in Belstar Microfinance Limited (Subsidiary) and subsequent intimations dated March 21, 2024, and March 28, 2024, the acquisition of an additional 2.27% equity stake in Belstar Microfinance Limited through off-market acquisition from the promoters is now completed.

Regarding the object of the acquisition of additional shares, the company stated that the acquisition of 12,42,203 equity shares helps it to increase its stake in Belstar Microfinance Limited to 66.13%.

The consideration for the transaction was in cash. The cost of acquisition for acquiring 12,42,203 equity shares amounted to ₹62,11,01,500.

Belstar Microfinance Limited is involved in the Microfinance Industry. It is a subsidiary of Muthoot Finance Limited. Some of the Directors of Muthoot Finance Limited are directors on the Board of Belstar Microfinance Limited. The company offers various loans, such as micro-enterprise loan, small and medium enterprise loan, consumption loan and education loan. Belstar Microfinance Limited reported a turnover of ₹10,312.61 million in FY 2023, ₹7,272.29 million in FY 2022 and ₹5,516.22 million in FY 2021. As of March 2024, they have active borrowers of 28,33,229 and 1,014 branches.

On April 18, 2024, the share price of Muthoot Finance Ltd opened at ₹1,636.10, touching the day’s high at ₹1,657.80, as of 11:05 AM on the NSE.

About Muthoot Finance

Muthoot Finance is a Non-Banking Financial Company (NBFC) that is involved in the business of providing gold loans, housing finance, personal loans, insurance, money transfer services and more. The company reported a total income of ₹3,167.73 crore in Q3 FY 2024, which is % higher than ₹2,659.82 crore in Q3 FY 2023. In Q3 FY 2024, the net profit of the company was 1,027.26 crore, which is % higher than ₹901.65 crore in Q3 FY 2023.

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