IPO Alert: Muthoot Fincorp Files DRHP with SEBI to Raise Funds

Muthoot Fincorp has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a proposed initial public offering, as per news reports. The proposed issue includes a 35% reservation for retail investors, while employees will also be eligible to participate.  

The DRHP does not provide a reservation for existing shareholders. The company is also considering a pre-IPO placement, with the amount proposed to be adjusted against the fresh issue component. 

Funds Planned for Expansion 

As per news reports, the IPO proceeds are primarily intended to strengthen Muthoot Fincorp's capital base and support expansion across its existing businesses. 

The planned deployment includes expanding its branch network and strengthening its technology infrastructure. 

Focus on Rural and Semi-Urban Markets 

Muthoot Fincorp plans to combine its physical and digital distribution network to expand its customer base, particularly across underserved rural and semi-urban markets. 

The lender also plans to deepen its presence in Tier-II and Tier-III markets and connect its branch network more closely with its digital platform, Muthoot Fincorp ONE. 

Gold loans remain the company's primary business, alongside products including business loans, loans against property, supply-chain finance and digital loans. 

FY26 Profit Stood at ₹1,847.62 Crore 

Muthoot Fincorp reported consolidated profit after tax of ₹1,847.62 crore and consolidated revenue of ₹11,227.80 crore for FY26. 

Its consolidated assets under management stood at ₹73,448.82 crore as of March 31, 2026. 

3,700-Plus Branch Network 

Muthoot Fincorp is the flagship financial services business of the 139-year-old Muthoot Pappachan Group and has operated in gold-backed lending for more than two decades. 

The company has more than 3,700 branches across India. The wider group also has interests in microfinance, housing finance, insurance distribution, and broking. 

IPO Advisors Appointed 

Kotak Mahindra Capital, Morgan Stanley India, JM Financial and SBI Capital Markets have been appointed as book-running lead managers for the proposed issue. 

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Conclusion 

Muthoot Fincorp's proposed IPO is valued at ₹3,000 crore, with a 35% retail reservation and a potential ₹160 crore pre-IPO placement, while the proceeds are earmarked primarily for capital strengthening and business expansion. 

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