Muthoot Finance lifts Sri Lankan stake to 72.92% with $3.7M share buy
What's the deal? Muthoot FinanceDealroom has a profile for this one. Try Dealroom → has invested LKR 1,09,65,84,451 — about ₹31.80 crore — in its Sri Lankan subsidiary Asia Asset Finance PLCDealroom has a profile for this one. Try Dealroom →. The Indian lender subscribed to 3,29,30,464 ordinary voting shares in a rights issue at LKR 33.30 each, lifting its stake to 72.92%.
Why now? The move follows a board approval on August 1, 2026, with shares allotted on September 8, 2026. The all-cash deal required sign-off from the Central Bank of Sri Lanka and the Colombo Stock ExchangeDealroom has a profile for this one. Try Dealroom →, both obtained.
What's the endgame? The infusion is meant to strengthen Asia Asset Finance's capital structure, and Muthoot said it aligns with plans to consolidate operations across its finance subsidiaries.
Asia Asset Finance is a licensed lender founded in 1968 and listed on the Colombo Stock Exchange. It runs a domestic, branch-led business with no cross-border operations and holds a Fitch national rating of A+(lka) with a stable outlook.
By the numbers: For fiscal 2025/26, Asia Asset Finance reported total income of LKR 10,219 million and profit after tax of LKR 1,038 million, part of what Muthoot described as a three-year upward trend.
The signal: The deal shows Muthoot deepening its cross-border push, tightening its grip on a profitable overseas subsidiary rather than acquiring new targets. For India's non-bank lenders, Sri Lanka's regulated finance market remains a route to overseas growth.
Read more: businessupturn.com
Image credit: Malinda Rathnayake
