Kerala-based Muthoot FinCorp is planning an initial public offering (IPO) worth roughly ₹2,800 crore, as the gold loan-focused non-banking finance company explores a market debut despite volatile conditions.
The company, part of the Muthoot Pappachan Group, has begun early discussions with investment bankers for the proposed share sale, Bloomberg reports. Formal appointments are yet to be finalised, indicating that the process is still at a preliminary stage.
However, the company has officially denied the IPO reports. It said these reports were not accurate.
The proposed IPO is expected to include a mix of fresh issue of shares and an offer for sale (OFS) by existing investors. While the listing could happen later this year, timelines remain flexible and will depend on market conditions.
Muthoot FinCorp is distinct from Muthoot Finance, which is already listed, though both belong to different branches of the same Muthoot family.
Muthoot FinCorp’s IPO plans come at a time when gold loans are witnessing strong growth across India’s retail credit market. Elevated gold prices and rising demand for quick liquidity have supported business expansion in the segment.
Founded in 1997, the company primarily lends against gold jewellery but has also diversified into loans for micro, small and medium enterprises, including both secured and unsecured offerings.
It operates a network of more than 3,700 branches across the country.
However, the broader market environment has turned uncertain, with recent corrections in equities dampening investor appetite for new listings. Discussions around the IPO are said to be ongoing, and crucial aspects such as size, structure and timing could change.
