Muthoot Finance Limited has approved the subscription of 3,29,30,464 Ordinary Voting Shares in the Rights Issue of its Sri Lankan subsidiary, Asia Asset Finance PLC. The total investment amounts to LKR 1,09,65,84,451 (approximately ₹31.80 Crores). This infusion of equity aims to bolster the subsidiary’s capital structure. Asia Asset Finance PLC has completed the allotment of these shares to Muthoot Finance Limited.
Muthoot Finance Boosts Subsidiary’s Capital
Muthoot Finance Limited’s Board of Directors has sanctioned a significant investment in its subsidiary, Asia Asset Finance PLC. The decision, made on August 01, 2026, involves the subscription of 3,29,30,464 Ordinary Voting Shares through a Rights Issue.
Financial Details of the Infusion
The subscription price for each share is set at LKR 33.30, resulting in an aggregate investment of LKR 1,09,65,84,451. This figure is approximately equivalent to ₹31.80 Crores. Following the approval, Asia Asset Finance PLC has successfully completed the allotment of these shares to Muthoot Finance Limited on September 08, 2026, thereby strengthening the subsidiary’s capital base.
Background on Asia Asset Finance PLC
Asia Asset Finance PLC is a listed Sri Lankan subsidiary of Muthoot Finance Limited. It operates as a Licensed Finance Company, incorporated in Sri Lanka on December 29, 1968. The company holds a Fitch national rating of A+(lka) with a Stable outlook. For the fiscal year 2023/24, Asia Asset Finance PLC reported a total income of Rs. 6,574 Mn and a profit after tax of Rs. 344 Mn, with projections indicating growth in the coming years.
Source: BSE
