Asia Asset Finance PLC (AAF), the Sri Lankan listed subsidiary of Muthoot Finance Ltd., has raised LKR 1.5 billion through its Rights Issue 2026, with the issue oversubscribed by approximately 1.3 times.
The successful fundraise is expected to strengthen Asia Asset Finance’s capital base and support the continued expansion of its lending business in Sri Lanka. The rights issue also comes at a time when the company is reporting growth across its loan portfolio, revenue and profitability.
Rights Issue Raises LKR 1.5 Billion
The Rights Issue comprised 45,162,012 ordinary voting shares, with the total amount raised standing at LKR 1,503.9 million.
The newly issued shares were listed on the Colombo Stock Exchange on September 15, 2026. The approximately 1.3 times oversubscription reflects participation from shareholders and provides AAF with additional capital for its business expansion plans.
The company plans to use the funds to strengthen its capital position and increase its capacity to support the growth of its lending operations across Sri Lanka.
Loan Portfolio and Revenue Continue to Grow
The capital raise follows a period of strong operating performance 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, representing a 51% year-on-year growth.
Total revenue increased 72% year-on-year to LKR 357 crore, compared with LKR 207 crore in the corresponding period last year.
Profit after tax stood at LKR 43 crore, up from LKR 18 crore in the corresponding period, marking a 137% year-on-year increase.
The company said the fresh capital will provide further support as it builds on the growth achieved across its lending portfolio, revenue and profitability.
Muthoot Finance to Support Sri Lankan Expansion
George Alexander Muthoot, Managing Director of Muthoot Finance, said the successful completion of the Rights Issue and its oversubscription demonstrate shareholder confidence in Asia Asset Finance’s growth journey.
He said the additional capital would strengthen AAF’s financial position and provide a stronger base for business expansion. He also pointed to the company’s growth in its loan portfolio, revenue and profitability during Q1 FY26/27.
Muthoot Finance, he added, remains committed to supporting Asia Asset Finance’s long-term growth and its efforts to expand its presence in Sri Lanka’s financial services sector while creating sustainable value for customers and shareholders.
Asia Asset Finance’s Presence in Sri Lanka
Asia Asset Finance operates across Sri Lanka and provides a range of financial products to individuals and businesses.
Its portfolio includes gold loans, leasing, mortgage loans, personal loans, Securitized Corporate Loans and public deposits. The company focuses on providing accessible financial solutions to meet the needs of customers across the country.
Founded in 1970, Asia Asset Finance is a Sri Lanka-based financial services company and a fully licensed, deposit-taking institution registered with the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011.
Muthoot Finance holds 78.41% of AAF’s equity share capital, making the company a listed subsidiary of the Indian financial services group.
Asia Asset Finance is rated Fitch A+ with a Stable Outlook and continues to focus on providing accessible financial solutions to individuals and businesses in Sri Lanka.
The company operates with the vision of “Empowering People and Transforming Lives” as it continues to expand its financial services business in the country.
-By Shivani Solanki
