Muthoot Fincorp Limited IPO

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The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

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Low risk:

AAA, AA+, AA, AA-, A+, A, A-

Moderate risk

BBB+, BBB, BBB-, BB+, BB

High risk

BB-, B+, B, B-, C, D

The rating agency for this Bond is Crisil.

About

Muthoot Fincorp Limited is a non-banking financial company (NBFC) primarily engaged in providing gold loans to individuals and businesses. The company offers loans secured against gold jewellery, along with other financial products, including loans to MSMEs and salaried customers, unsecured business loans, and financial services, including insurance distribution, mutual funds, foreign exchange, and money transfer services. It also has interests in wind energy generation and real estate through joint ventures. The company operates through an extensive branch network across India and is headquartered in Kerala. As of March 31, 2026, it had 3,781 branches across 25 states and Union Territories. It is part of the Muthoot Pappachan Group. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: Onward lending, financing, and repayment/prepayment of interest and principal of existing borrowings of the company — at least 75 percent of the net proceeds General corporate purposes — maximum up to 25 percent of the net proceeds;

Pros and Cons

Pros

Cons

The company is one of the larger NBFCs in India focused on gold loans, with a sizeable gold loan portfolio and over two decades of experience in this segment. It claims to have built a strong brand presence, particularly in South India, supported by repeat customers and a large retail borrower base.

The company claims to have an extensive branch network of 3,781 branches across 25 states and union territories as of March 31, 2026. A significant portion of these branches is located in rural and semi-urban areas, which provides access to underserved customer segments.

The company claims to offer a range of gold loan products tailored to different customer needs, along with additional services, such as MSME loans, insurance distribution, and money transfer services. This diversified offering enables it to cater to multiple borrower segments beyond traditional gold loans.

The company claims to have relatively quick loan processing and disbursement, supported by trained staff and localised operations. Its branch-level presence and customer support systems are designed to facilitate faster appraisal and servicing of loans.

The company claims to have access to multiple funding sources, including bank borrowings, non-convertible debentures, and commercial paper. It also undertakes securitisation and assignment transactions to optimise capital usage and funding costs.

Muthoot Fincorp Limited

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