Muthoot Finance injects ₹2bn additional equity into Homefin subsidiary

Muthoot Finance Limited announced on September 10, 2025, the completion of an additional equity infusion into its wholly-owned subsidiary, Muthoot Homefin (India) Limited. The board of directors of Muthoot Homefin (India) Limited allotted 26,666,666 equity shares to Muthoot Finance Limited, representing a total consideration of ₹1,999,999,950. This move follows an intimation made on August 13, 2025, regarding the board's decision.

The additional equity infusion aims to bolster Muthoot Homefin's capital base and enhance its capital adequacy ratio. The funds raised will be deployed for business funding, general corporate purposes, and the repayment of existing loans. As Muthoot Homefin (India) Limited is a wholly-owned subsidiary, this equity infusion does not alter the overall shareholding percentage.

Muthoot Homefin (India) Limited, a housing finance company headquartered in Kerala, reported a turnover of ₹3,263.32 million for the financial year 2024-25, ₹1,988.85 million for 2023-24, and ₹1,388.44 million for 2022-23. The transaction is categorized as an "arm's length" related party transaction, with some directors of Muthoot Finance also serving on the board of Muthoot Homefin.