Muthoot Microfin IPO subscribed 1.46 times

Published on Dec 19, 2023 17:22

The IPO Muthoot Microfin received bids for 3,55,76,631 shares as against 2,43,87,447 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (19 December 2023). The issue was subscribed 1.46 times.

The issue opened for bidding on Monday (18 December 2023) and it will close on Wednesday (20 December 2023). The price band of the IPO is fixed at Rs 277 to 291 per share. An investor can bid for a minimum of 51 equity shares and in multiples thereof.

The offer comprises fresh issue of up to Rs 760 crore and an offer for sale of up to Rs 200 crore. The promoter shareholding in the company would decline to 55.5% post- IPO from 69.1% pre-IPO.

The company proposes to utilize the net proceeds from the fresh issue towards augmenting the capital base to meet future capital requirements, arising out of the growth of business and assets. The company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges, including to enhance brand image among existing and potential customers and creation of a public market for the Equity Shares in India.

Ahead of the IPO, Muthoot Microfin on Friday, 15 December 2023 raised Rs 284.99 crore from anchor investors. The board allotted 97.93 lakh shares at Rs 291 each to 26 anchor investors.

Muthoot Microfin is the fifth largest NBFC-microfinance company in terms of gross loan portfolio. The company provides micro-loans to women customers primarily for income generation purposes with a focus on rural regions of India. The loan products comprise group loans for livelihood solutions such as income generating loans, life betterment solutions including mobile phones loans, solar lighting product loans and household appliances product loans, health and hygiene loans such as sanitation improvement loans and secured loans in the form of gold loans and Muthoot Small & Growing Business (MSGB) loans. The company is the part of the Muthoot Pappachan Group. Muthoot Microfin has a customer base of 31.9 lakh active customers, who are serviced by 12297 employees across 1340 branches in 339 districts in 18 states and union territories in India. The gross loan portfolio of the company has increased at a strong pace of 46% yoy to Rs 10867 crore end September 2023.

The firm reported a net profit of Rs 205.26 crore and income from operations of Rs 914.11 crore for the six months ended on 30 September 2023.