Muthoot Finance , a leading non-banking financial company (NBFC), has made a significant move to strengthen its subsidiary, Muthoot Money Limited. The company has injected ₹499.99 crore as equity into Muthoot Money, aiming to fortify the subsidiary's capital base and improve its capital adequacy ratio.

Key Details of the Equity Infusion

• Amount Invested: ₹499.99 crore
• Shares Allotted: 3,25,139 equity shares
• Purpose: To strengthen the capital base and improve capital adequacy ratio
• Utilization of Funds: For funding business operations, general corporate purposes, and repayment of existing loans

Impact on Ownership

Muthoot Money Limited remains a wholly-owned subsidiary of Muthoot Finance Limited. The additional equity infusion does not result in any change in shareholding structure.

Regulatory Compliance

The equity infusion was disclosed in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The allotment of shares was completed on August 28, following the board's decision announced on August 13.

About Muthoot Money Limited

Muthoot Money Limited is a Non-Banking Financial Company (NBFC) headquartered in Kerala. The company has shown significant growth in recent years, as evidenced by its turnover figures:

This substantial increase in turnover over the past three years underscores the growing importance of Muthoot Money within the Muthoot Finance group.

The equity infusion by Muthoot Finance into Muthoot Money reflects the parent company's commitment to strengthening its subsidiary's financial position. This move is expected to enhance Muthoot Money's ability to expand its operations and compete more effectively in the non-banking financial services sector.

Muthoot Finance , a leading non-banking financial company (NBFC) in India, has successfully priced USD 600 million worth of Fixed Rate Notes under its USD 2 billion Global Medium Term Note (GMTN) Programme. The company's Finance Committee approved the pricing, tenure, and terms on August 26, 2025, marking a significant move in its international fundraising efforts.

Key Details of the Notes

• Issue Size: USD 600 million
• Coupon Rate: 6.375% per annum
• Maturity: March 2, 2030
• Average Maturity: 4 years
• Issue Price: 99.996% of face value
• Listing: Proposed to be listed on NSE IFSC Limited

Amortization and Interest Schedule

The notes feature a structured repayment plan with five amortization payments:

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

Interest payments are scheduled semi-annually on March 2 and September 2 each year, commencing from September 2, 2025.

Security and Use of Proceeds

The notes are secured by a first-ranking pari passu charge over Muthoot Finance's current assets, including book debts, loans, advances, and receivables, with a specific focus on gold loan receivables. This security structure underscores the company's strong asset base in the gold loan segment.

Proceeds from the issue will be utilized for onward lending activities, adhering to the Reserve Bank of India's (RBI) External Commercial Borrowing Guidelines and Foreign Exchange Management Regulations. This aligns with Muthoot Finance's core business of providing gold loans and other financial services.

Regulatory Compliance and Approval

The issuance is in compliance with the Foreign Exchange Management (Borrowing and Lending) Regulations 2018 and the RBI's Master Direction on External Commercial Borrowings. Muthoot Finance has obtained necessary approvals from the RBI for this international fundraising initiative.

Closing and Settlement

The closing and settlement of the notes are expected to occur on September 2, 2025, approximately five working days from the pricing date. This timeline allows for the completion of necessary documentation and regulatory procedures.

Market Implications

This successful pricing of USD 600 million notes by Muthoot Finance demonstrates the company's strong standing in international financial markets. The competitive coupon rate of 6.375% reflects investor confidence in Muthoot Finance's business model and financial health.

The issuance under the GMTN Programme provides Muthoot Finance with additional liquidity to expand its lending operations, potentially leading to growth in its core gold loan business and other financial services. It also showcases the company's ability to diversify its funding sources beyond domestic markets, which could enhance its financial flexibility and support its long-term growth strategies.

As Muthoot Finance continues to strengthen its position in the NBFC sector, this international bond issuance marks a significant milestone in its corporate journey, potentially setting a precedent for other Indian NBFCs looking to tap into global capital markets.