Muthoot fincorp approves ₹4,000 crore IPO amid strong q4 profit growth

Muthoot FinCorp Ltd’s (MFL) Board of Directors on Saturday approved an initial public offering (IPO), comprising a fresh issue of equity shares aggregating up to ₹4,000 crore.

The non-banking finance company’s board also green-lighted the subdivision of each equity share of face value ₹10 each into 5 equity shares of face value ₹2 each, fully paid-up, along with consequential alteration of the Memorandum of Association.

IPO subject to regulatory approvals and market conditions

The NBFC, which is predominantly engaged in gold loans, said in a regulatory filing that the planned IPO is subject to revisions in the amount as may be permissible under applicable law.

The proposed IPO is subject to market conditions, receipt of applicable approvals, regulatory clearances and other considerations.

Aggressive fundraising plans across debt instruments

MFL, which is the flagship company of the Muthoot Pappachan Group, is planning to raise up to ₹4,000 crore each via public issue of Non-Convertible Debentures (NCDs) and private placement of NCDs/PDIs/Subordinated Debts.

The NBFC’s Board also approved raising funds by way of issue of Commercial Papers with an overall issuance limit of ₹30,000 crore and a maximum outstanding limit, at any point in time, of ₹10,000 crore.

Strong Q4 performance boosts financial outlook

Meanwhile, MFL reported a robust 204 per cent year-on-year jump in fourth-quarter standalone net profit to ₹584 crore, up from ₹192 crore in the year-ago quarter.