Muthoot Finance has infused additional equity of nearly Rs 500 crore into its wholly owned subsidiary, Muthoot Money, as part of efforts to strengthen the subsidiary’s capital base and improve its capital adequacy ratio.
In a regulatory filing dated December 30, 2025, the company informed stock exchanges that the Board of Directors of Muthoot Money has completed the allotment of 3,25,139 equity shares to Muthoot Finance. The total consideration for the equity infusion stands at Rs 4,99,99,87,542, and the transaction has been completed in cash .
Muthoot Money is a non-banking financial services company and operates as a wholly owned subsidiary of Muthoot Finance. The additional equity infusion does not result in any change in shareholding structure or control, as Muthoot Finance already holds 100% ownership in the subsidiary.
According to the filing, the funds raised through the equity infusion will be utilised for funding business operations, general corporate purposes, and repayment of existing loans. The company also clarified that no governmental or regulatory approvals were required for completing the transaction.
Muthoot Money is headquartered in Kerala and operates in the NBFC space. Over the last three financial years, the subsidiary has reported a steady rise in turnover, with revenue of Rs 4,299.43 million in FY25, compared with Rs 1,231.53 million in FY24 and Rs 446.88 million in FY23, reflecting significant business expansion .
Muthoot Finance stated that the equity infusion aligns with its broader strategy to support the growth of its subsidiaries while maintaining strong capital buffers.
