The flagship company of Kerala-based Muthoot Pappachan Group is in talks with bankers to advise on the offering, with a formal appointment expected soon, the people said, asking not to be identified because the information is private.
The IPO, which will be a mix of new shares and an offer for sale by existing investors, could take place later this year, the people said.
Even as gold loans emerge as one of the fastest-growing segments in India’s retail credit market, driven by high bullion prices and demand for short-term liquidity, the sharp slide in the stock market this month has dampened sentiment for new offerings. Walmart Inc.-backed PhonePe Ltd. on Monday put its IPO plans on hold, underscoring the challenging listing environment.
Deliberations are ongoing, and the terms of the potential offering could still change, the people said. Muthoot FinCorp spokesperson said bankers have not been hired.
Founded in 1997, Muthoot FinCorp is a non-deposit-taking financial company that primarily lends against gold jewelry. The company has also expanded into secured and unsecured lending to micro, small, and medium enterprises. It employs more than 23,000 people and operates over 3,700 branches, according to its website.