Muthoot Fincorp' approved a proposal to raise up to Rs 4,000 crore through an initial public offering of equity shares, subject to shareholder approval. The proposed IPO will be a fresh issue of equity shares with a face value of Rs 10 each, and the company said the issue will depend on market conditions, regulatory approvals and other applicable clearances.

The board also cleared a set of related fund-raising measures, including a share split and multiple debt issuances. These decisions come as IPO activity in FY26 remains subdued after a very busy FY25, when companies raised record amounts. The company also reported a sharp rise in its FY26 profit.

As part of the board decisions, each equity share with a face value of Rs 10 will be subdivided into five equity shares with a face value of Rs 2 each, fully paid-up. The board also approved the consequential alteration of the memorandum of association.

In addition to the proposed IPO, Muthoot Fincorp approved the raising of up to Rs 4,000 crore through the public issuance of non-convertible debentures for the period from 1 July 2026 to 30 June 2027. It also approved raising up to Rs 4,000 crore through the private placement of non-convertible debentures, perpetual debt instruments and subordinated debt, again subject to shareholder approval.

The company said the Stock Allotment Committee has been authorised to exercise powers related to the issue and allotment of securities from time to time. Separately, Muthoot Fincorp approved fund-raising through the issuance of commercial papers, with an overall issuance limit of Rs 30,000 crore and a maximum outstanding limit of Rs 10,000 crore at any point of time.

The non-bank lender reported a net profit of Rs 1,640 crore for FY26, more than double the Rs 787 crore posted in FY25. Muthoot Fincorp, the flagship financial services company of the 139-year-old Muthoot Pappachan Group, also announced its financial results for the fourth quarter of FY2025-26 along with its subsidiaries, Muthoot Microfin and Muthoot Housing Finance.

On a consolidated basis, net profit for FY26 rose 204 per cent to Rs 1,847.62 crore, while consolidated revenue increased 32 per cent to Rs 11,227.80 crore. The consolidated assets under management (AUM) stood at RS 73,448.82 crore.

The broader IPO market, meanwhile, has seen a lull in FY26 after a record-setting FY25. The company noted that most IPOs in the earlier period were secondary transactions in which existing investors were exiting, while concerns were also raised about fresh issuances. Against that backdrop, Muthoot Fincorp has lined up an IPO, a share split and several debt-raising options as it moves ahead with its funding plans.