Muthoot Fincorp Profit Jumps Over Two Times In FY26, Company Announces ₹4,000 Crore IPO Plan

Mumbai: Non-banking finance company (NBFC) Muthoot Fincorp has announced plans to enter the stock market through an Initial Public Offering (IPO). The company aims to raise up to Rs 4,000 crore through the public issue.

The decision was taken during a board meeting held on Saturday. According to the company, the IPO will mainly consist of a fresh issue of equity shares. The money raised will be used to support future business growth and expansion plans.

However, the company has not yet shared the timeline for launching the IPO. It said the issue will depend on shareholder approval, market conditions and regulatory clearances.

Profit More Than Doubles in FY26

Muthoot Fincorp reported a strong financial performance for FY26. The company posted a net profit of Rs 1,640 crore, which is more than double the Rs 787 crore profit recorded in FY25.

The sharp rise in profit reflects strong growth in the company’s gold loan business and lending operations.

Muthoot Fincorp is part of the Muthoot Pappachan Group and is mainly known for providing gold loans across India.

Stock Split Approved by Board

Along with the IPO announcement, the company’s board also approved a stock split.

Under this move, one equity share with a face value of Rs 10 will be divided into five shares with a face value of Rs 2 each.

Stock splits are generally done to make shares more affordable for small investors and improve liquidity in the market.

More Fundraising Plans Announced

The company has also approved additional fundraising measures to strengthen its financial position.

Muthoot Fincorp plans to raise up to Rs 4,000 crore through public issuance of non-convertible debentures (NCDs). It also approved another Rs 4,000 crore through private placements.

Apart from this, the company approved a commercial paper programme with an overall limit of Rs 30,000 crore.

IPO Market Remains Slow

The IPO market in FY26 has remained slow compared to FY25, when many companies launched public issues and raised record amounts.

However, experts noted that many earlier IPOs mainly involved existing investors selling their stakes rather than companies raising fresh capital for expansion.