Muthoot Finance , a leading non-banking financial company (NBFC), has completed an additional equity infusion of ₹499.99 crore into its wholly-owned subsidiary, Muthoot Money Limited. The company announced the completion of share allotment on December 30, 2025, following the board's earlier decision in November 2025.

Transaction Details

The equity infusion transaction involved the following key parameters:

Strategic Objectives

The additional equity infusion serves multiple strategic purposes for strengthening Muthoot Money Limited's financial position. The funds will be utilized for funding business operations, general corporate purposes, and repayment of existing loans. This move aims to strengthen the subsidiary's capital base and improve its capital adequacy ratio, positioning it for enhanced operational capabilities.

Subsidiary Performance Overview

Muthoot Money Limited, headquartered in Kerala, operates as a Non-Banking Financial Company (NBFC) and has demonstrated remarkable growth trajectory in recent years:

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

Ownership Structure and Compliance

Muthoot Money Limited remains a wholly-owned subsidiary of Muthoot Finance Limited, with the additional equity infusion not resulting in any change in shareholding structure. Some directors of Muthoot Finance Limited also serve on the Board of Muthoot Money Limited, maintaining strategic alignment between the parent company and subsidiary.

The transaction was disclosed in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. No governmental or regulatory approvals were required for this internal equity infusion.

Market Impact

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

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.