Muthoot Finance , a leading non-banking financial company (NBFC), has announced a significant move to strengthen its presence in the housing finance sector. The company has completed a substantial equity infusion of ₹2,000 crore into its wholly-owned subsidiary, Muthoot Homefin (India) Limited.

Capital Injection Details

The capital injection, aimed at fortifying Muthoot Homefin's financial position, was executed through the allotment of 2,66,66,666 equity shares to Muthoot Finance Limited. This strategic move is expected to have a positive impact on the subsidiary's capital base and improve its capital adequacy ratio.

Purpose and Impact

According to the company's disclosure, the additional equity infusion serves multiple purposes:

1. Strengthening the capital base of Muthoot Homefin
2. Improving the capital adequacy ratio
3. Funding business growth
4. Supporting general corporate purposes
5. Facilitating repayment of existing loans

Muthoot Homefin Overview

Muthoot Homefin (India) Limited, headquartered in Kerala, operates in the housing finance sector. The company has shown significant growth in recent years, as evidenced by its turnover figures:

This data demonstrates a consistent upward trend in the subsidiary's financial performance over the past three years.

Regulatory Compliance

The equity infusion was completed in compliance with the Securities and Exchange Board of India (SEBI) regulations. Muthoot Finance has made the necessary disclosures under Regulation 30, read with Schedule III and other applicable regulations of the SEBI Listing Obligations and Disclosure Requirements.

Conclusion

This strategic move by Muthoot Finance underscores the company's commitment to expanding its footprint in the housing finance sector. By strengthening Muthoot Homefin's capital base, the parent company aims to support the subsidiary's growth trajectory and enhance its competitive position in the market.

As the housing finance industry continues to evolve, this capital infusion positions Muthoot Homefin to capitalize on emerging opportunities and navigate potential challenges in the sector.

Muthoot Finance Limited , a leading Indian financial services company, has successfully settled USD 600 million worth of 6.375% Senior Secured Notes that were due in 2030. The notes were issued under the company's $2 billion Global Medium Term Note Programme.

Key Details of the Settlement

The Finance Committee of Muthoot Finance's Board of Directors approved the settlement and allotment of the notes at its meeting held on September 2, 2025. The notes will be listed on the NSE IFSC Limited.

Terms of the Notes

• Size of the Issue: USD 600.00 Million
• Coupon Rate: 6.375%
• Maturity: March 2, 2030
• Listing: NSE IFSC Limited

Amortization Schedule

The notes will be repaid in five installments:

1. March 2, 2029
2. June 2, 2029
3. September 2, 2029
4. December 2, 2029
5. March 2, 2030 (Final principal payment)

Interest Payment Details

Interest on the notes will be paid semi-annually on March 2 and September 2 each year, commencing from March 2, 2026.

Security

The notes are secured by a first-ranking pari passu charge (by way of hypothecation) over all current assets, book debts, loans and advances, receivables, including gold loan receivables, both present and future.

Use of Proceeds

The net proceeds from the issue will be used by Muthoot Finance for onward lending and other activities permitted by the ECB Guidelines, in accordance with approvals granted by the Reserve Bank of India.

This settlement demonstrates Muthoot Finance's strong financial position and its ability to manage long-term debt obligations effectively. The successful completion of this transaction also highlights the company's continued access to international capital markets, which can support its future growth and expansion plans.

As one of India's largest gold financing companies, Muthoot Finance's ability to raise and settle substantial amounts of foreign currency denominated debt underscores its robust business model and financial stability in the non-banking financial services sector.