Key Quantitative Figures

  • Aggregate value of proposed related party transactions: ₹2500 Crore (Rupees Two Thousand Five Hundred Crores only)
  • Maximum value per individual transaction: ₹500 Crore (Rupees Five Hundred Crores only)
  • Company's FY26 standalone turnover: ₹2,369.56 Crore
  • Materiality threshold (10% of turnover): ₹236.96 Crore
  • Muthoot Fincorp Limited's FY26 consolidated turnover: ₹11,227.80 Crore
  • Existing RPT with MFL as of March 31, 2026: ₹4.42 Crore
  • RPT with MFL as of September 30, 2026: ₹202.08 Crore
  • Bank guarantee commission: ₹50 Lakhs

Parties Involved

  • Muthoot Microfin Limited (Company)
  • Muthoot Fincorp Limited (Holding Company/Related Party)
  • NSDL (E-voting service provider)
  • CS Puzhankara Sivakumar, Practicing Company Secretary (Scrutinizer)
  • BSE Limited and National Stock Exchange of India Limited (Listing exchanges)

Nature of Proposed Transactions

The proposed related party transactions with Muthoot Fincorp Limited include:

  • Direct Assignment transactions of Gold Loan product aggregating up to ₹2,000 crore
  • Co-lending Arrangement for Gold Loan Product
  • Gold Loan Customer Sourcing by the Company to MFL Referral Arrangement
  • Gold stock keeping or custody at the Locker facility of MFL
  • Payment of commission for Bank Guarantee of ₹50 Lakhs for celebrity endorsement agreement with Shah Rukh Khan
  • Cash Management Services for collection of Company's Customer Receipts through branches of MFL with Service Fee
  • Other future transactions, if any

Approval Process

  • The Asset Liability and Management Committee approved on July 31, 2026
  • The Audit Committee approved on August 6, 2026
  • The Board of Directors approved on November 5, 2026
  • Shareholder approval sought through postal ballot with e-voting only
  • Ordinary resolution required for approval

Voting Details

  • Voting restricted to remote e-voting only through NSDL platform
  • Members holding shares as of November 06, 2026 cut-off date eligible to vote
  • Scrutinizer appointed: CS Puzhankara Sivakumar of SEP& Associates, Cochin
  • Results will be communicated to stock exchanges and displayed on company website

Financial and Operational Impact

  • Transactions are in ordinary course of business and at arm's length basis
  • Expected to provide operational efficiencies and facilitate business expansion
  • Will optimize utilization of financial and other resources
  • Strengthen business processes
  • No defaults reported on previous transactions with MFL

Shareholding Information

  • Muthoot Fincorp Limited holds 50.21% equity share capital of Muthoot Microfin Limited
  • Aggregate promoter and promoter group holding: 55.47%
  • Director shareholdings in related party: Thomas Muthoot (32.46%), Thomas George Muthoot (32.21%), Hannah Muthoot (0.26%), Thomas Muthoot John (0.26%)

Credit Rating

Muthoot Fincorp Limited's latest credit rating: Long Term - Care AA, BWR AA+ with Stable Outlook

Documents Availability

Postal Ballot Notice available on company website (www.muthootmicrofin.com), stock exchange websites (BSE and NSE), and NSDL e-voting website (www.evoting.nsdl.com)

Restrictions

Related parties shall not vote to approve the resolution as per Regulation 23(4) of SEBI LODR Regulations