Muthoot Fincorp Ltd IPO

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The rating agency for this Bond is Crisil Ratings Limited.

About

Muthoot Fincorp Limited is a non-banking financial company (NBFC) that primarily provides gold loans and other lending and financial services. Its lending products include gold loans, business loans, loans against property, supply chain financing, digital loans, microfinance, and housing loans. The company also offers insurance distribution, payments, savings, and other financial services. It operates through its gold loan business and Business and Personal Finance Division, along with its subsidiaries, Muthoot Housing Finance Company Limited and Muthoot Microfin Limited. The company is part of the Muthoot Pappachan Group, which has interests in financial services and other sectors. It operates the Muthoot FinCorp ONE digital platform, which supports loan applications, repayments, renewals, and customer service. As of September 30, 2026, the company had 3,872 gold loan branches and 326 processing centres across 25 states and Union Territories in India. Muthoot Pappachan Technologies Limited, a subsidiary, supports its operations by providing technology infrastructure and related services. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: For onward lending, financing, and repayment/prepayment of interest and principal of existing borrowings of the company — at least 75% General corporate purposes — up to 25%;

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The company has been engaged in the gold loan business for over two decades. As of September 30, 2026, it operated 3,872 gold loan branches and had increased its consolidated gold loan assets under management (AUM) per branch from Rs 5.30 crore as of March 31, 2024, to Rs 13.05 crore as of March 31, 2026.

The company is part of the Muthoot Pappachan Group, which traces its trading business roots to 1887 and began its gold loan business in 1939. The group comprises 44 companies across financial services, hospitality, automotive, IT services, precious metals, renewable energy, and real estate.

The company offers 32 retail lending products across gold loans, loans against property, business loans, personal loans, digital loans, microfinance, and housing finance. Its Muthoot FinCorp ONE platform recorded 83.40 lakh downloads, 13.70 lakh monthly active users, and 25.80 lakh annual transacting customers as of March 31, 2026.

As of March 31, 2026, secured lending products accounted for 96.17% of the company’s standalone AUM and 78.09% of its consolidated AUM. Further, over 57.75% of its standalone secured AUM comprised loans with ticket sizes below Rs 5 lakh, while no single state accounted for more than 15.15% of its standalone AUM.

The company has a diversified borrowing profile comprising term loans, non-convertible debentures (NCDs), commercial paper, external commercial borrowings, and perpetual debt instruments. As of October 1, 2026, it had 67 listed NCD issuances and had received credit ratings of Crisil AA/Stable, BWR AA+/Stable and CARE AA; Stable for its long-term borrowings.

The company’s standalone AUM increased from Rs 21,922.70 crore in FY24 to Rs 56,185.10 crore in FY26, representing a compound annual growth rate (CAGR) of 60.09%. Its standalone profit increased from Rs 562.81 crore in FY24 to Rs 1,640.21 crore in FY26, a CAGR of 70.71%.

The company uses product-specific underwriting systems, business rule engines, automated workflows, and early warning systems for credit assessment and portfolio monitoring. For gold loans, it follows an Eight-Eye Control System that includes multi-layered gold appraisal, periodic quality audits, dual-custody strong rooms, surveillance, internal audits, and insurance of pledged gold.

Muthoot Fincorp Ltd

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