Muthoot Fincorp eyes IPO in next 3 years

Muthoot Fincorp, the flagship company of the Muthoot Pappachan group, is gearing up for a Dalal Street entry. The company is readying itself to hit the capital markets with an initial public offer (IPO) within the next three years.Non-banking finance company (NBFC) Muthoot Fincorp specialises in gold financing and its biggest rivals in the space-Manappuram Finance as well as Muthoot Finance are both publicly listed entities and this Initial Public Offering (IPO) will help the company gain a larger market share.

The promoters are also looking to dilute 25 percent stake in the company once it goes public. It is also in the process of hiving off its microfinance businesses.

Once the listing happens Muthoot Microfinance will be a 100 percent subsidiary of Muthoot Fincorp. The company had also announced its plans to raise up to Rs 800 crore through private equity investors in the current year for Muthoot Fincorp, some of which will also go to Muthoot Microfinance services and this will help the company gain about 30 percent increase in their assets under management.