NewsVoir
Kochi (Kerala) [India], September 28: Asia Asset Finance PLC (AAF), a listed subsidiary of Muthoot Finance Ltd., has successfully completed its Rights Issue 2026, raising LKR 1.5 billion. The Rights Issue was oversubscribed by approximately 1.3 times, reflecting strong participation from shareholders and providing the company with additional capital to support its growth plans.
The Rights Issue comprised 45,162,012 ordinary voting shares, with the total amount raised standing at LKR 1,503.9 million. The new shares were listed on the Colombo Stock Exchange on September 15th , 2026.
The successful fundraise comes amid strong operating momentum for Asia Asset Finance. During Q1 FY26/27, the company's loan portfolio stood at LKR 5,270 crore, compared with LKR 3,492 crore in Q1 FY26/27, registering a 51% year-on-year growth. Total revenue increased by 72% YoY to LKR 357 crore, compared with LKR 207 crore in the corresponding period last year. Profit after tax stood at LKR 43 crore, compared with LKR 18 crore in Q1 FY26/27, marking a 137% YoY increase.
The capital raised through the Rights Issue will further strengthen AAF's capital position and provide the company with greater capacity to support the continued expansion of its lending business. The fundraise also comes as the company builds on the growth achieved across its loan portfolio, revenues and profitability.
George Alexander Muthoot, Managing Director, Muthoot Finance, said, “The successful completion of Asia Asset Finance’s Rights Issue, with the issue being oversubscribed by approximately 1.3 times, is a significant milestone for the company and reflects the confidence of shareholders in its growth journey. The capital raised will further strengthen AAF’s capital position and provide a stronger foundation to support its business expansion. With the company delivering strong growth across its loan portfolio, revenue and profitability in Q1 FY26/27, Asia Asset Finance is well positioned to build on this momentum and deepen its presence in Sri Lanka’s financial services landscape. Muthoot Finance remains committed to supporting AAF’s long-term growth and its efforts to create sustainable value for customers and shareholders.”
Asia Asset Finance has a presence across Sri Lanka and offers a diversified portfolio of financial solutions, including gold loans, leasing, mortgage loans, Securitized Corporate Loans, and public deposits. The company's continued growth reflects the increasing demand for accessible financial solutions among individuals and businesses across the country.
About Asia Asset Finance PLC
Asia Asset Finance PLC (AAF) is a Sri Lanka-based financial services company incorporated in 1970 and a fully licensed, deposit-taking institution registered with the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011. A listed subsidiary of Muthoot Finance Ltd., which holds 78.41% of AAF’s equity share capital, AAF offers a diversified portfolio of financial solutions including gold loans, leasing, mortgage loans, personal loans, Securitized corporate loans, and public deposits, serving individuals and businesses across Sri Lanka. The company is rated Fitch A+ with a Stable Outlook and continues to focus on supporting customers and businesses through accessible financial solutions, with its vision centred on “Empowering People and Transforming Lives.”
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