Muthoot FinCorp has approved plans to raise up to Rs 4,000 crore through an IPO as the gold loan-focused lender looks to capitalise on strong growth in the organised lending market. The proposed IPO will consist of a fresh issue of equity shares with a face value of Rs 10 each, subject to regulatory approvals and market conditions.
CEO Shaji Varghese said the company may dilute at least 10% stake to comply with listing requirements, while any further dilution would depend on valuation and market response. He added that the valuation discovery process has not yet begun as the company is still in the process of appointing investment bankers for the issue.
