Muthoot Finance Share Price in Focus; Muthoot Money Merger Gets Board Approval and 1,006 Branches Added

Muthoot Finance Limited is set to absorb its wholly owned subsidiary, Muthoot Money Limited, after the Board approved the amalgamation scheme on August 31, 2026. 

The two companies already have a similar business focus, with both primarily engaged in gold loans. The proposed merger will bring Muthoot Money's operations into Muthoot Finance. 

Muthoot Money to Be Merged 

Muthoot Money is the transferor company and Muthoot Finance is the transferee company in the scheme. 

The two businesses differ greatly in size. Muthoot Money, as on March 31, 2026 had a turnover of ₹1,294.13 crore and an aggregate asset size of ₹10,344.92 crore. Muthoot Finance reported annual turnover was ₹27,599.87 crore asset ₹1,79,944.55 crore 

The consolidation is designed to simplify the group structure, making its operations, finance and administration more efficient,' it said. 

1,006 Branches to Be Added 

Muthoot Finance currently has more than 5,000 branches. The merger will add another 1,006 branches from Muthoot Money. 

Along with the branch network, the company plans to bring offices, infrastructure, systems and processes together. It also expects the consolidation to reduce duplication and create cost and revenue synergies. 

No Shares to Be Issued 

There is no fresh share issuance planned under the merger. As Muthoot Money is already wholly owned by Muthoot Finance, the entire share capital held by Muthoot Finance will be cancelled once the scheme takes effect. 

The company has stated that this will leave its shareholding pattern and capital structure unchanged. 

April 1, 2027 Appointed Date 

The proposed appointed date is April 1, 2027 subject to the required approvals. 

The company also plans to bring customer and lender engagement onto a single platform and combine the financial, managerial, technical and human resources of the two businesses. 

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Muthoot Finance Share Price Performance  

As of 01 September 2026, at 2:17 PM, Muthoot Finance Limited share price is trading at ₹2,902.40 per share, reflecting a decline of 2.54% from the previous trading session. 

Conclusion 

The proposed amalgamation will bring Muthoot Money's business and 1,006 branches under Muthoot Finance. With no new shares to be issued, the company's existing shareholding pattern and capital structure will remain unchanged. 

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