Key Event and Quantitative Figures

At its meeting held on August 01, 2026, the Board of Directors of Muthoot Finance Limited approved the subscription to a rights issue of its subsidiary, Asia Asset Finance PLC (AAF).

The company subscribed to 3,29,30,464 (32.93 million) Ordinary Voting Shares at a price of LKR 33.30 per share. The total aggregate investment amounts to LKR 1,09,65,84,451, which is approximately ₹31,80,09,491 (INR 31.80 Crores).

The allotment of these shares to Muthoot Finance Limited was completed by Asia Asset Finance PLC on September 08, 2026.

Details of the Target Entity

  • Name: Asia Asset Finance PLC (AAF)
  • Status: A listed Sri Lankan subsidiary of Muthoot Finance Limited.
  • Industry: Licensed Finance Company.
  • Incorporation: Incorporated in Sri Lanka on 29 December 1968 under the Companies Act No. 51 of 1938 (Registration No. PB 139 PQ) and re-registered under the Companies Act No. 07 of 2007.
  • Credit Rating: Holds a Fitch national rating of 'A+(lka)' with a Stable outlook.

Financial Performance of Asia Asset Finance PLC

| Financial Year | Total Income (Turnover) | Profit After Tax |

| FY 2023/24 | Rs. 6,574 Mn | Rs. 344 Mn |

| FY 2024/25 | Rs. 6,901 Mn | Rs. 441 Mn |

| FY 2025/26 | Rs. 10,219 Mn | Rs. 1,038 Mn |

Purpose and Rationale

The stated object and impact of the acquisition is "To increase capital structure of the Subsidiary".

Regulatory and Governance Aspects

  • Related Party Transaction: The acquisition is a related party transaction as Asia Asset Finance PLC is a subsidiary. Some directors of Muthoot Finance Limited are also directors on the board of Muthoot Money Limited.
  • Governmental Approvals: The necessary approvals from the Central Bank and the Colombo Stock Exchange in Sri Lanka were obtained.
  • Form of Consideration: The acquisition was made using cash consideration.
  • Percentage Acquired: The disclosure confirms the acquisition of 32,930,464 shares but does not explicitly state the resulting percentage of shareholding or change in control.

Document and Company Information

  • Disclosure Reference: SEC/MFL/SE/2026/6741
  • Disclosure Date: September 09, 2026
  • Scrip Code (NSE): MUTHOOTFIN
  • Company Secretary: Rajesh Achutha Warrier (ICSI Membership No. FCS 7106)
  • Company CIN: L65910KL1997PLC011300