Muthoot Fincorp Limited IPO

Rating

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.

Categories

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 operates as a middle-layer non-banking financial company (NBFC-ML). Its primary business involves providing loans secured against gold jewellery and ornaments, commonly referred to as gold loans. The company states that these loans are designed to help individuals meet personal or business financial needs, particularly those who may not have easy or timely access to formal credit. Such loans are often used to manage unexpected expenses or short-term liquidity requirements. The company mainly offers retail lending products, with gold loans forming the largest part of its portfolio. It provides several types of gold loan schemes, including Muthoot Blue Super Value Loan, Easy Blue, Easy Max, Easy Pro, Restart India Pradhan, Easy Scale Up, Vyapar Vikas, Kisan Vikas, and Udaan. Apart from gold loans, the company offers secured loans to micro, small, and medium enterprises (MSMEs) and salaried individuals. It provides digital and other unsecured loans to MSMEs, small businesses, traders, and similar customer segments. In addition, the company distributes financial products such as mutual funds and general and life insurance. Through its branch network, it also offers foreign exchange services and facilitates money transfers as a sub-agent of registered money transfer agencies. 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 prepayment/repayment of the borrowings availed by the company – at least 75 percent of the net proceeds (as per the prospectus). General corporate purposes – up to 25 percent of the net proceeds.;

Pros and Cons

Pros

Cons

The company claims to be among the largest non-banking financial companies (NBFCs) in India that primarily operate in the gold loan segment, based on the size of its gold loan portfolio. The company further states that over time, it has developed significant experience in this business and built a strong brand reputation across the country.

As of December 31, 2025, the company operated 3,757 branches across 25 states, including the Union Territory of Andaman and Nicobar Islands and NCR-Delhi. The company states that its wide branch network, especially in rural and semi-urban areas, allows it to reach a large number of potential customers. This extensive presence also helps serve existing customers through nearby branches while also expanding its customer base in underserved regions. The company states that it can also use this network to support future growth and meet customer needs more effectively.

The company raises funds through multiple sources, including term loans from banks, issuance of redeemable non-convertible debentures through private or public placements, commercial papers, and cash credit or working capital facilities from banks. The company states that by maintaining a record of timely debt repayment, it has developed strong relationships with various funding partners, including public sector and private banks in India.

The company has experienced a consistent increase in revenue from operations. It increased from Rs 5,129.89 crore in FY23 to Rs 6,543.14 crore in FY24 to Rs 8,497.65 crore in FY25.

Muthoot Fincorp Limited

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