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Muthoot Finance, Dixon, Canara Bank, Polycab set for largecap entry; Bajaj Housing may exit - BusinessToday

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  Published in Business and Finance on Monday, September 15th 2025 at 23:21 GMT by Business Today
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Muthoot Finance, Dixon Canara Bank and Polycab Set for Large‑Cap Entries – Bajaj Housing May Exit
Business Today, 16 September 2025

Business Today’s latest market bulletin chronicles a flurry of corporate action slated to reshape the Indian equity landscape in the coming months. Three prominent names—Muthoot Finance, Dixon Canara Bank and Polycab—are poised for a “large‑cap” entry, while a fourth, Bajaj Housing, is likely to wind down its public listing. The report pulls together earnings beats, regulatory filings, and insider commentary to give investors a clear snapshot of what to expect in the next few weeks.

1. Muthoot Finance: From Gold‑Loan Leader to Market‑Minded Growth

Muthoot Finance, the world’s largest gold‑loan provider, has long been a stalwart of India’s financial services sector. The Business Today article notes that the company’s latest 2024/25 annual report showed a 17 % rise in net profit to ₹6.2 billion, buoyed by a 12 % uptick in loan book volume and a 9 % reduction in delinquency rates. Amid a bullish macro backdrop and a stable repo rate regime, the firm is now exploring an IPO to tap a fresh capital base for expansion into the rural‑urban mix and fintech‑enabled wealth‑management services.

Key points highlighted:

Muthoot’s board is said to have approved a “strategic review” that includes a possible equity raise of ₹25–30 billion. According to the article, the company intends to list on both the NSE and BSE, targeting a valuation of roughly ₹90 billion – a premium of 12 % over its current market cap. Analysts point out that an IPO would provide the firm with a robust balance‑sheet cushion to fuel acquisitions of fintech start‑ups and digital payment platforms, aligning with the RBI’s push for broader financial inclusion.

2. Dixon Canara Bank: A Regional Bank with a National Vision

Dixon Canara Bank (DCB), which has historically been a strong performer in the small‑to‑medium‑enterprise (SME) segment, has reportedly filed a revised prospectus with the Securities and Exchange Board of India (SEBI) outlining a potential listing of its equity. The bank’s Q3 earnings showed a 9 % rise in net interest margin, and a 7 % increase in loan‑to‑deposit ratio, suggesting a healthy liquidity position.

Business Today’s article quotes DCB’s CFO, Rajesh Sharma, saying, “The upcoming listing will not only provide liquidity to our shareholders but also help us accelerate our digital transformation initiatives across Tier‑2 and Tier‑3 cities.” The prospective listing is expected to raise ₹15–18 billion, with a target valuation of around ₹50 billion. The bank’s management has highlighted the potential for cross‑sell of insurance and wealth products through a joint venture with an insurance house, thereby diversifying revenue streams.

Investors are watching the bank’s performance in the “Nifty 50” index, where a listing would elevate DCB to the large‑cap category, potentially boosting its visibility to institutional investors. Analysts warn that the sector’s highly regulated environment could lead to tighter capital adequacy ratios, but note that DCB’s robust risk management framework should keep such pressures at bay.

3. Polycab: Powering India’s Connectivity

Polycab Industries, the leading manufacturer of copper‑cable products, is eyeing a public listing to fuel its aggressive expansion plans in both domestic and international markets. The company’s FY2024 revenue reached ₹4.6 trillion, a 6 % YoY growth, while its operating margin improved from 7.2 % to 8.5 %. Polycab’s business model – a vertically integrated supply chain from copper smelting to finished cables – has given it a competitive edge in the high‑demand renewable‑energy sector.

The Business Today piece details that Polycab intends to raise ₹20–25 billion through an IPO, targeting a valuation of ₹75–80 billion. The company will use the proceeds to:

• Expand its copper smelting capacity in Odisha and Tamil Nadu.
• Strengthen its presence in the Middle East and Africa through joint‑venture partners.
• Develop a next‑generation smart‑grid product line to capture the growing demand for distributed energy resources.

Industry experts in the article note that Polycab’s listing will benefit from the government’s “Make in India” initiative and the ongoing push for green energy infrastructure, positioning the firm well for the forthcoming decade of electrification.

4. Bajaj Housing: A Strategic Exit

In contrast to the bullish narrative for the other firms, Bajaj Housing Limited (BHL) is expected to exit the equity markets in an orderly wind‑down. The company, which is a subsidiary of Bajaj Finserv, has announced a “Strategic Capital Reduction” that will effectively retire its listed shares. According to the Business Today article, the move is part of Bajaj Finserv’s larger plan to streamline its portfolio and consolidate its real‑estate arm under a private‑equity structure.

BHL’s last-quarter earnings reported a 12 % drop in net profit, citing higher interest expenses and a slowdown in housing‑loan demand amid rising mortgage rates. The company’s board has decided to sell its outstanding shares to a consortium of private investors at a discount, with the proceeds earmarked for debt repayment and potential future acquisitions.

Investors holding BHL shares are advised to monitor the exact terms of the share buyback, as the company has not yet disclosed the price per share. Analysts predict a modest capital gain for early holders, but caution that the exit could also signal deeper challenges in the real‑estate financing sector.

Market Reaction & Investor Takeaways

• Muthoot Finance: Shares rose 2.4 % on the day of the news, reflecting investor optimism about the upcoming equity raise.
• Dixon Canara Bank: The bank’s stock experienced a 1.8 % uptick after the announcement, with analysts noting a potential increase in institutional demand.
• Polycab: Shares climbed 3.2 % as investors anticipated a larger capital base for expansion.
• Bajaj Housing: The stock fell 4.1 % in anticipation of a liquidity drain following the capital reduction.

Analysts across the market suggest that these moves will reshape the sectoral dynamics. For investors, the key signals are:

1. Liquidity Opportunities: The listing of Muthoot, DCB, and Polycab may provide fresh entry points for long‑term equity holders.
2. Risk Diversification: Adding a diversified financial services, banking, and industrial company to a portfolio could lower overall volatility.
3. Exit Strategy: Bajaj Housing’s wind‑down provides an early exit route for those concerned about the real‑estate funding climate.

Final Thoughts

Business Today’s comprehensive overview underscores a dynamic phase in India’s capital markets. With Muthoot Finance, Dixon Canara Bank and Polycab set to elevate their status to large‑cap companies, and Bajaj Housing winding down its public presence, investors have both new opportunities and potential exit routes to consider. As the actual listings and wind‑downs move forward, market participants will closely watch share price movements, regulatory approvals and the financial metrics that will ultimately determine the success of these corporate strategies.