Muthoot Finance Limited has informed the Exchange about Acquisition of shares in Muthoot Homefin India Limited
MUTHOOTFIN · price
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Muthoot Finance Limited's Board has approved an additional equity infusion of up to Rs. 200 Crores in its wholly-owned housing finance subsidiary, Muthoot Homefin (India) Limited, via cash consideration. The investment is aimed at strengthening the subsidiary's capital base and improving its capital adequacy ratio. Since Muthoot Homefin is already a 100% wholly-owned subsidiary, this infusion will not change the shareholding pattern. The transaction is expected to be completed within six months and no regulatory approvals are required. Muthoot Homefin's turnover has been declining, from Rs. 198.88 Crores in FY23-24 to Rs. 98.34 Crores in FY24-25.
This is a capital infusion into an existing wholly-owned subsidiary and does not affect the parent company's shareholding or trigger any open offer. For shareholders, it signals continued commitment to grow the housing finance business, though the declining turnover at the subsidiary may raise questions about the growth trajectory of this vertical.