Muthoot Fincorp appoints four lead managers for IPO

Mumbai: Gold loan lender Muthoot Fincorp has appointed Kotak Mahindra Capital, Morgan Stanley India, JM Financial and SBI Capital Markets as book-running lead managers for its proposed ₹3,000-crore initial public offering (IPO), people aware of the development told ET.

The proposed issue, likely of fresh stock that would expand the equity base, could result in around 10% dilution of promoter equity, sources said. The company is expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) this week.

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Proceeds from the IPO are expected to be used primarily to strengthen the lender's capital base and support growth in its existing businesses, including expansion of its branch network and investments in technology, sources said.

The company plans to use its physical and digital distribution network to expand its customer base, particularly in underserved rural and semi-urban markets, people cited above said. Gold loans are expected to remain the key growth driver even as the lender scales up other products and services.

Muthoot Fincorp also plans to deepen its presence in tier-II and tier-III markets and increase engagement with existing customers by combining its branch network with its digital platform, Muthoot Fincorp ONE.

The lender offers products including gold loans, business loans, loans against property, supply-chain financing and digital loans. The broader group also has interests in microfinance, housing finance, insurance distribution and broking, among other financial services.

Muthoot Fincorp closed FY26 with consolidated profit after tax of ₹1,847.62 crore on consolidated revenue of ₹11,227.80 crore. Its consolidated assets under management stood at ₹73,448.82 crore as of March 31, 2026.

Muthoot Fincorp is the flagship financial services company of the 139-year-old Muthoot Pappachan Group and is primarily focused on gold-backed lending. The non-bank lender operates more than 3,700 branches across India and has been in the gold loan business for over two decades.

To be sure, Muthoot Finance, which is listed, and hitherto unlisted Muthoot Fincorp, trace their roots to the same founding family in Kerala, but run under different branches of the family.