Muthoot Fincorp is preparing to enter the public markets after the company’s board approved plans to raise up to ₹4,000 crore through an initial public offering (IPO), as per news reports.
The proposed public issue comes after the gold loan-focused NBFC reported a substantial jump in earnings during FY26.
The company also announced a stock split alongside the IPO proposal as it looks to broaden investor participation ahead of the planned listing.
Muthoot Fincorp reported consolidated net profit of ₹1,848 crore for FY26, recording a sharp increase from ₹608 crore reported in the previous financial year.
The strong earnings growth comes amid continued momentum in the gold loan segment, supported by elevated gold prices and stable retail credit demand.
The company’s board has now approved an IPO comprising a fresh issue of equity shares aggregating up to ₹4,000 crore.
The proposed fundraising is expected to strengthen the company’s capital base and support future business expansion across lending and retail financial services operations.
Gold loan companies have continued to benefit from rising customer preference for secured borrowing products, particularly in semi-urban and rural markets where gold-backed financing remains a major source of short-term liquidity.
Along with the IPO proposal, Muthoot Fincorp’s board approved a subdivision of equity shares in the ratio of 1:5.
Under the plan, every existing share with a face value of ₹10 will be split into 5 shares with a face value of ₹2 each.
Stock splits are generally undertaken to improve liquidity and make shares more affordable for a wider investor base. The move is expected to support broader market participation as the company prepares for its public listing.
Muthoot Fincorp remains one of India’s large non-banking financial companies focused primarily on gold loans while also offering other retail financial products and services.
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The proposed ₹4,000 crore IPO and stock split mark a major step for Muthoot Fincorp as the company looks to capitalise on strong earnings momentum and growing demand in the secured retail lending segment.
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Published on: May 18, 2026, 10:01 AM IST
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