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MUTHOOT MICROFIN IPO

IPO Details

-
-
51 Shares
₹ 14,841
₹ 277– 291
₹ Up to 960 Cr

Issue timeline

  • -
  • 21-Dec-2023
  • 22-Dec-2023
  • 22-Dec-2023
  • 26-Dec-2023

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

- A microfinance institution providing micro-loans to women customers (primarily for income generation purposes) with a focus on rural regions of India. (Source: Company DRHP)
- The fourth largest NBFC-MFI in India in terms of gross loan portfolio as of December 31, 2022 (Source: CRISIL Report)
- As of March 31, 2023, they have 2.77 million active customers, who are serviced by 10,227 employees across 1,172 branches in 321 districts in 18 states and union territories in India

Strengths & Risks

Strengths (3)

Market leadership with a pan-India presence
They are the third largest amongst NBFC-MFIs in South India in terms of gross loan portfolio, the largest in Kerala in terms of MFI market share, and a key player in Tamil Nadu with an almost 16% market share, as of December 31, 2022 (Source: CRISIL Report). Their business model helps in driving financial inclusion, as they serve customers who belong to low-income groups. (Source: Company DRHP)

Risks (2)

Their business is vulnerable to interest rate risk
Their results of operations depend to a large extent on the amount of net interest income as their primary revenue source is interest income. Changes in market interest rates affect the interest rates they charge on their interest-earning assets differently from the interest rates they pay on their interest-bearing liabilities.Any increases in interest rates in the future could adversely impact our business, financial condition and results of operations(Source: Company DRHP)

  • Market leadership with a pan-India presence
    They are the third largest amongst NBFC-MFIs in South India in terms of gross loan portfolio, the largest in Kerala in terms of MFI market share, and a key player in Tamil Nadu with an almost 16% market share, as of December 31, 2022 (Source: CRISIL Report). Their business model helps in driving financial inclusion, as they serve customers who belong to low-income groups. (Source: Company DRHP)

  • Rural focused operations
    The company has a history of serving rural markets with high growth potential in the microfinance segment, and have maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and expansion into underpenetrated areas. (Source: CRISIL Report, Company DRHP)

  • Brand recall and synergies with the Muthoot Pappachan Group
    The company is a part of the Muthoot Pappachan Group, a business conglomerate with presence across financial services, automotive, real estate, healthcare, information technology, precious metals and alternate energy sectors. They are the second largest company under the Muthoot Pappachan Group, in terms of AUM for the Financial Year 2023. Their relationship with the Muthoot Pappachan Group provides them with brand recall and significant marketing and operational benefits. (Source: Company DRHP)

  • Their business is vulnerable to interest rate risk
    Their results of operations depend to a large extent on the amount of net interest income as their primary revenue source is interest income. Changes in market interest rates affect the interest rates they charge on their interest-earning assets differently from the interest rates they pay on their interest-bearing liabilities.Any increases in interest rates in the future could adversely impact our business, financial condition and results of operations(Source: Company DRHP)

  • There are several outstanding legal proceedings against their Company
    There are several outstanding legal proceedings against Company, Directors and Promoters. These proceedings are pending at different levels of adjudication before various courts, tribunals, enquiry officers and appellate tribunals. Such proceedings could divert management time and attention, and consume financial resources in their defence or prosecution. Further, an adverse outcome in any of these proceedings may adversely affect reputation, business, prospects, financial condition and results of operations. (Source: Company DRHP)

Financials

Net Worth
Total Income
Profit After Tax
Earning Per Share

Industry Overview

-Rural India accounts for 45% of GDP, but only 11% of deposits and 9% of credit: About 45% of India’s GDP comes from rural areas; however, their share is abysmally low at just 11% of total banking deposits and 9% of total credit as of December 2022. Lack of bank infrastructure, low level of financial literacy and investment habits along with lack of formal identification are some of the reasons for the low penetration
- Loan cycle-wise break up of disbursements in financial year 2022: Muthoot Microfin has a long-standing track record of high customer retention in loan cycles 2 and 3. Its well-balanced customer distribution across loan cycles indicates focus on acquiring new customers, as well as retaining existing ones. However, as it continues to acquire new customers, the portfolio share in cycle 1 may increase.   (Source: Company DRHP)

Muthoot Microfin IPO FAQs

What is the minimum lot size and investment required for Muthoot Microfin IPO?

The lot size is 51 shares and minimum investment required is Rs.14,841 for Muthoot Microfin IPO

Muthoot Microfin IPO is mainboard IPO of issue size up to Rs.960 Crores

Muthoot Microfin IPO opens from 18th Dec, 2023 and closes on 20th Dec ,2023 for subscription.

The allotment date is 21st Dec and listing date is 26th Dec for Muthoot Microfin IPO.

Head to IPO section on ICICI Direct website and select Muthoot Microfin Ltd. Enter and submit bid details and then click on proceed to apply once details are verified. It’s that simple!!

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Muthoot Microfin IPO

₹ 14,841
51 Shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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