Muthoot Finance invests additional Rs 300 crore in Belstar Microfinance

Muthoot Finance Limited has greenlit an additional investment of Rs. 300 Crores in Belstar Microfinance Limited, a subsidiary, along with a secondary purchase of equity shares from existing promoters worth up to Rs. 75 Crores. This move is geared towards fortifying the capital base and enhancing the capital adequacy ratio.

The primary goal of the acquisition is to bolster the capital base and enhance the capital adequacy ratio. Additionally, the secondary acquisition from the promoters will enable Muthoot Finance to increase its equity stake in Belstar.

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The acquisition process is expected to be completed within two months. Belstar Microfinance Limited, being a subsidiary of Muthoot Finance Limited, plays a vital role in the company’s expansion and service offerings in the microfinance sector.

Belstar Microfinance Limited, headquartered in Tamil Nadu, operates as a subsidiary of Muthoot Finance Limited. Some of the directors of Muthoot Finance Limited also hold positions on the Board of Belstar Microfinance Limited.