Muthoot Finance Limited has informed the Exchange about Acquisition
MUTHOOTFIN · price
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Muthoot Finance Limited has completed the allotment of 3,25,139 additional equity shares in its wholly-owned subsidiary Muthoot Money Limited for a total cash consideration of approximately Rs. 50 crore. The funds have been raised through a rights issue and will be used to strengthen the capital base, improve the capital adequacy ratio, fund business growth, meet general corporate purposes, and repay existing loans. Muthoot Money Limited is a non-banking financial company (NBFC) based in Kerala, and its turnover has grown sharply from Rs. 44.69 crore in FY23 to Rs. 123.15 crore in FY24 and Rs. 429.94 crore in FY25. Since the subsidiary is already fully owned, the shareholding pattern remains unchanged.
This is a routine capital infusion into an existing wholly-owned subsidiary, so there is no change in ownership or control. It is credit-positive for Muthoot Money Limited as it strengthens its capital adequacy, supporting future lending growth. Negligible direct impact on Muthoot Finance shareholders since the subsidiary is already fully owned and consolidated.