Muthoot Finance completes ₹200-crore equity infusion in Muthoot Homefin to boost capital base

Largest pureplay gold loan NBFC Muthoot Finance Limited on Wednesday (September 10) announced that it has completed an additional equity infusion of ₹200 crore in its wholly-owned subsidiary, Muthoot Homefin (India) Limited.The company allotted 2.67 crore equity shares to Muthoot Finance in cash at a premium of ₹9 per share to enhance the capital base and improve the capital adequacy ratio.

Also Read: Muthoot Finance injects ₹200 crore into housing finance arm for expansion

The funds raised through this equity infusion will be used for funding the business, general corporate purposes, and repayment of existing loans. The allotment does not alter the shareholding pattern as Muthoot Homefin remains a wholly-owned subsidiary.First quarter resultsMuthoot Finance reported a 89.6% year-on-year (YoY) spike in net profit at ₹2,046 crore for the first quarter that ended June 30, 2025, the highest for any quarter. In the corresponding quarter of the previous fiscal, Muthoot Finance posted a net profit of ₹1,079 crore. The CNBC-TV18 poll had predicted a profit of ₹1,674 crore for the quarter under review.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, jumped 50.6%, coming at ₹3,473 crore against ₹2,305 crore in the corresponding quarter of FY25. The CNBC-TV18 poll had predicted a net interest income of ₹3,199 crore for the quarter under review.

Also Read: Muthoot Finance infuses ₹500-crore equity into subsidiary Muthoot Money

Muthoot Homefin operates in the housing finance sector and is headquartered in Kerala. The company reported turnovers of ₹138.84 crore in FY23, ₹198.88 crore in FY24, and ₹326.33 crore in FY25.

Shares of Muthoot Finance Ltd ended at ₹2,899.85, down by ₹42.05 or 1.43%, on the BSE today, September 10.