Muthoot FinCorp to raise Rs 500 crore for its microfinance business - Muthoot FinCorp
Register Now for Loan From Home!


Muthoot FinCorp to raise Rs 500 crore for its microfinance business


Muthoot FinCorp to raise Rs 500 crore for its microfinance business

MUMBAI: Muthoot FinCorp is in advanced talks with foreign private equity funds to raise between Rs 400 and Rs 500 crore for its microfinance business as it looks to expand its diversified lending portfolio with more consumer-centric products and insulate itself from the impact of volatile gold prices.

Yes, we are looking to raise funds and are in serious talks with some large foreign PE funds. I cannot divulge any names at this moment. This is part of our strategy to de-risk the assets by diversifying into non-gold credit businesses,” Muthoot FinCorp chairman and managing director Thomas John Muthoot told ET.

Muthoot FinCorp is the flagship of the diversified conglomerate Muthoot Pappachan Group.

The fund raising in the micro finance business is expected to conclude in a couple of months and the funds will be used for business expansion. The transaction will help the company more than double its asset book from the current Rs 2100 crore to Rs 5000 crore in two to three years.

“We are diversifying ourselves as a full-fledged financial services firm, and will be completing the portfolio diversification in its full measure and then plan an IPO,” he said.

The financial services verticals (gold loan, low value housing loans, two-wheeler loans, microfinance, MSME) of the Muthoot Pappachan Group, put together, aims to grow its loan disbursement by 35-40% this financial year. Last year, it had disbursed Rs 18,000 crore.

The share of gold loans is expected to fall to 76% from 83% earlier last year. Other loan business will include two-wheeler financing and SME gold loans.

The Kerala-based company is also planning to lend Rs 600 crore to the underfinanced MSME sector.
Originally Posted on: The economic times logo
Sprite Image

Beware of fraudulent job consultants

It has been brought to our notice that certain individuals are receiving fraudulent emails, phone calls, and messages, etc, about job vacancies with Muthoot FinCorp and they are also being asked to deposit money in certain bank accounts.

Please be informed that such communications and practices are completely mala fide and sent with an intent to defraud the public and bring disrepute to the goodwill of our Company. Our Company does not ever demand any fee/money against recruitment nor for the application/interview process.

The public at large is hereby cautioned not to be misled by any such communications received through emails, message or any other communication mode.

Please contact us for further information about the genuineness or otherwise of such communications at:

Muthoot FinCorp Ltd.

MG Road, Near Spencer's, Trivandrum - 695 039

Phone: 0471 4911550 / 0471 4911430

Email: [email protected]