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Muthoot Finance acquires Muthoot Money

Muthoot Finance has acquired Muthoot Money (MMPL), post approval of the Reserve Bank of India. The company purchased 5,625 number of equity shares of face value Rs 1,000 each at a price of Rs 17,685 per share aggregating to Rs 9,94,78,125 from existing shareholders; and subscribed 56,545 number of fresh equity shares of face value of Rs 1,000 each at Rs 17,685 per share aggregating to Rs 99,99,98,325.

Total investment by the company is approximately Rs 110 crore in equity share capital of the MMPL. Post investment, the company is holding 100% paid up equity share capital of MMPL which is Rs 6,21,70,000 consisting of 62,170 equity shares of Rs 1,000 each, and MMPL has become the wholly owned subsidiary of Muthoot Finance.

Muthoot Finance is a non-banking financial company (NBFC), which is engaged in providing loan (financing) against collateral of gold jewelry. The company offers gold loans, foreign inward money transfer services, foreign exchange services, insurance broking etc.