Muthoot Finance Company History

Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio.
Headquartered in Kerala the Company provides personal and business loans secured by gold
jewellery or Gold Loans primarily to individuals who possess gold jewellery but could not access
formal credit within a reasonable time or to whom credit may not be available at all to meet
unanticipated or other short-term liquidity [Link] company's wholly-owned subsidiary
Muthoot Insurance Brokers Pvt Limited (MIBPL) is licensed as a direct broker by IRDAI since 2013
and is actively distributing both life and non-life insurance products of various insurance
companies. Muthoot Finance's another wholly-owned subsidiary Muthoot Homefin (India)
Limited is a housing finance company with a focus on affordable housing finance. Muthoot
Finance's subsidiary Belstar Investment and Finance Private Limited (BIFPL) is a microfinance
company. Muthoot Finance holds 66.61% of equity share capital of BIFPL. Muthoot Finance's
foreign subsidiary Asia Asset Finance PLC (AAF) Colombo is involved in Retail Finance Hire
Purchase & Business [Link] Finance Limited was incorporated as a Private Limited
Company on 14th March 1997 with the name 'The Muthoot Finance Pvt Ltd.' and was converted
into a Public Limited Company on November 18 2008. The Company was promoted by Late Mr.
M. G. George Muthoot Mr. George Thomas Muthoot Mr. George Jacob Muthoot and Mr. George
Alexander Muthoot who collectively operated under the brand name of The Muthoot Group. The
Company's operating history evolved over a period of 70 years since M George Muthoot the
father of the promoters founded a gold loan business in 1939 under the heritage of a trading
business established by his father Ninan Mathai Muthoot in [Link] the year 2001 the Company
obtained the license from RBI to function as an NBFC. In the year 2005 as per the Scheme of
Amalgamation Muthoot Enterprises Private Limited was amalgamated with the Company with
effect from March 22 [Link] May 16 2007 the name of the company was changed from The
Muthoot Finance Pvt Ltd to Muthoot Finance Pvt Ltd. During the year 2008-09 the company
opened 278 new branches across various states. Also they opened regional offices in Sales and
[Link] November 18 2008 the company was converted into public limited company
and the name was changed to Muthoot Finance Ltd. They obtained fresh RBI license to function
as an NBFC without accepting public deposits consequent to change in [Link] the year
2009-10 the company added 620 new branches. As per the scheme of de-merger the radio
business of the company was demerged and transferred to Muthoot Broadcasting Pvt Ltd with
effect from January 01 [Link] company opened 316 new branched between April 2010 to
August 2010. During the year 2010 the company's branch network crossed 1600 branches retail
loan portfolio crossed Rs 7400 crore retail debenture portfolio crossed Rs 2700 crore net owned
funds crossed Rs 500 crore gross annual income crossed Rs 1000 crore and bank credit limits
crossed Rs 1700 [Link] 2011 the company's retail loan portfolio crossed Rs 15800 crore retail
debenture portfolio crossed Rs 3900 crore net owned funds crossed Rs 1300 crore gross annual
income crossed Rs 2300 crore bank credit limit crossed Rs 6000 crore and branch network
crossed 2700 branches. During the year Muthoot Finance received PE investments of Rs 255.68
crore from Matrix partners LLC The Welcome Trust Kotak PE Kotak Investments and Baring India
PE. In April 2011 Muthoot Finance successfully raised Rs 901.25 crore from an initial public offer.
In 2012 Muthoot Finance's retail Loan portfolio crossed Rs 24600 crore retail debenture portfolio
crossed Rs 6600 crore net owned funds crossed Rs 2900 crore gross annual income crossed Rs
4500 crore bank credit limit crossed Rs 9200 crore and branch network crossed 3600 branches.
During the year the company raised Rs 693 crore through Non-convertible Debenture Public
Issue- Series I and Rs 459 crore through Non-convertible Debenture Public Issue - Series [Link]
2013 Muthoot Finance's branch network crossed 4400 branches. During the year the company
raised Rs 259 crore through Non-convertible Debenture Public Issue- Series III Rs 277 crore
through NCD Public Issue - Series IV and Rs 300 crore through NCD Public Issue - Series V.
During the year the company obtained RBI license to start operating 9000 White Label [Link]
2014 Muthoot Finance raised Rs 418 crore through the oversubscribed (1.8 times) Institutional
Placement Progrmame (IPP). During the year the company acquired 51 per cent equity shares of
Colombo-based Asia Asset Finance PLC (AAF).In 2015 Muthoot Finance's retail loan portfolio
reached Rs 23409 crore net owned funds crossed Rs 5000 crore gross annual income reached
Rs 4325 crore and profit after tax reached Rs 671 [Link] 2016 Muthoot Finance's retail loan
portfolio crossed Rs 24300 crore net owned funds crossed Rs 5500 crore gross annual income
reached Rs 4875 crore and profit after tax for the year reached Rs 810 crore. During the year the
company acquired 79% of the equity capital of Muthoot Homefin (India) Limited (MHIL). MHIL is
a housing finance company registered with The National Housing Bank. In June 2016 Muthoot
Finance acquired Muthoot Insurance Brokers Private Limited (MIBPL) as a wholly-owned
subsidiary. MIBPL is an unlisted private limited company holding a licence to act as direct broker
from IRDA since 2013. In July 2016 Muthoot Finance acquired 46.83% of the capital of Belstar
Investment and Finance Private Limited (BIFPL). BIFPL was reclassified as an `NBFC-MFI' by RBI
with effect from 11 December 2013. In 2016 credit rating agencies CRISIL and ICRA upgraded
Muthoot Finance's long-term debt rating. The Board of Directors of Muthoot Finance in its
meeting held on 13 February 2017 decided to make an additional investment in M/s. Muthoot
Homefin (India) Limited (MHIL) a subsidiary company by way of purchase of 17 lakh equity
shares of face value Rs. 10/- each at a price of Rs. 11.37/- per share aggregating to Rs. 1.93 crore
approximately from an existing shareholder. Post the investment Muthoot Finance Ltd. will have
88.27% shareholding in [Link] 18 September 2017 Muthoot Finance announced that it has
completed the acquisition of Muthoot Homefin (India) Limited (MHIL) by way of purchase of 88
lakh equity shares of face value Rs. 10/- each at a price of Rs. 44/- per share aggregating to Rs.
38.72 crore from existing shareholders and has made a further investment by subscribing to 2.27
38.72 crore from existing shareholders and has made a further investment by subscribing to 2.27
crore equity shares of nominal value of Rs. 10/- each at Rs. 44/- each as approved by the Board
at its meeting held on 8 August 2017. Post investment the Muthoot Finance is holding 100% paid
up share capital of MHIL and MHIL has become the wholly owned subsidiary of Muthoot Finance
[Link] 23 March 2018 Muthoot Finance announced that the company has further invested in 14
lakh Equity Shares of nominal value of Rs 10 each at a total price of Rs 7 crore by way of
subscription to rights issue of Belstar Investment and Finance Private Limited. With this
investment the company has increased its shareholding in aforesaid subsidiary to 66.61% from
existing shareholding of 64.60%.On 5 July 2018 Muthoot Finance announced that it has agreed
in principle to acquire shares as well as subscribe to equity shares of Muthoot Money Pvt Ltd
(MMPL) which will result in the change of management/control of MMPL. This is with the
intention of further diversifying its business activities. MMPL is engaged in lending and other
businesses primarily vehicle finance [Link] 20 July 2018 Muthoot Finance announced that
Securities and Exchange Board of India (SEBI) has provided its primary approval to the company
for setting up Asset Management Company and Trustee Company along with other compliance
under SEBI (Mutual Fund) Regulations 1996 in order to get registered with SEBI for the proposed
mutual fund. The company has to complete the registration process within 6 months of the
primary approval in order to get registered with SEBI for setting up proposed mutual fund
Business subject to further regulatory [Link] Loan Assets Portfolio of the Company
increased by Rs 51041.00 million during the year 2018-19 reaching Rs 342461.20 million as on 31
March 2019 as against Rs 291420.20 million as on 31 March [Link] Net Interest Margin was
14.47% as compared to 15.29% in the previous FY [Link] company successfully completed
18th and 19th Issue of Non-Convertible Debentures through Public Issue during FY 2018-19
raising Rs 37094.57 [Link] company has raised Rs 5750.00 million through Private
Placement of [Link] on 31 March 2019 the company has seven subsidiaries namely M/s.
Asia Asset Finance PLC M/s. Muthoot Homefin (India) Limited M/s. Muthoot Insurance Brokers
Private Limited M/s. Belstar Investment and Finance Private Limited M/s. Muthoot Money Limited
M/s. Muthoot Asset Management Private Limited and M/s. Muthoot Trustee Private [Link]
Loan Assets Portfolio of the Company increased by Rs 73644.85 million during the year reaching
Rs 416106.05 million as on 31 March 2020 as against Rs 342461.20 million as on 31 March
[Link] Net Interest Margin was 15.52% as compared to 14.47% in the previous [Link]
company successfully completed 20th 21st and 22nd Issue of Non-Convertible Debentures
through Public Issue during FY20 raising Rs 21015.24 [Link] company has raised 14250.00
million through Private Placement of debentures during the financial [Link] Finance
Limited was awarded India's No. 1 Most Trusted Financial Services Brand for the 5th year in a row
by Brand Trust Report [Link] Loan Assets Portfolio of the Company increased by Rs 110117.32
million during the year reaching Rs 526223.37 million as on 31 March 2021 as against Rs
416106.05 million as on 31 March [Link] Net Interest Margin was 14.24% as compared to
416106.05 million as on 31 March [Link] Net Interest Margin was 14.24% as compared to
15.52% in FY 2019- [Link] company successfully completed 23rd and 24th Issue of Non-
Convertible Debentures through Public Issue during FY 2020-21 raising Rs 22929.86 [Link]
company has raised Rs 36455.00 million through Private Placement of Non-Convertible
Debentures during the financial [Link] on 31 March 2021 the company had seven subsidiaries
namely Asia Asset Finance PLC Muthoot Homefin (India) Limited Muthoot Insurance Brokers
Private Limited Belstar Microfinance Limited Muthoot Money Limited Muthoot Asset Management
Private Limited and Muthoot Trustee Private [Link] on 31 March 2021the company have
4632 branches across 29 states and union [Link] on March 31 2022 Company had 7
subsidiaries namely Asia Asset Finance PLC Muthoot Homefin (India) Limited Muthoot Insurance
Brokers Private Limited Belstar Microfinance Limited Muthoot Money Limited Muthoot Asset
Management Private Limited and Muthoot Trustee Private Limited. Loan assets portfolio crossed
Rs. 580 billion in FY 2022. It raised fresh equity of Rs 2750 million in Belstar Microfinance
Limited resulting in reduction of Muthoot Finance's equity stake to 60.69%. The branch network
crossed 4600. It launched the Loan Originating System by name iMithra to digitally originate the
leads for better TAT. It focused more on funding Cars and new two wheeler in vehicle loan
portfolio.