BSE & NSE
18 Dec - 20 Dec '23
₹277 - ₹291
Muthoot Microfin Limited, a subsidiary of Muthoot Pappachan Group, was founded in April 1992 to provide micro-loans to female consumers in rural India. The company offers income-generating loans, Pragathi loans (bridging loans to existing customers for working capital and income-generating activities), secured loans in the form of gold loans, and Muthoot Small & Growing Business ("MSGB") loans for livelihood solutions. They also provide life-improvement opportunities such as loans for cell phones, solar lighting, and household goods. Greater Pacific Capital, an investor shareholder in Muthoot Microfin Ltd, will offer shares worth 50 crore out of the total shares worth 200 crore offered in the OFS. The promoter owners will offer the remaining shares for ₹150 crore. Muthoot Microfin Ltd's whole IPO will thus consist of the issuing and sale of 3,29,89,690 shares (329.90 lakh shares approximately), resulting in a total IPO size of 960.00 crore at the maximum price range of ₹291 per share. Muthoot Microfin is looking to raise ₹960 crore, which includes a fresh issue of ₹760 crore and an offer-for-sale of up to 6,872,852 equity shares, amounting to ₹200 crore. The anchor book for the issue will open on Friday, December 15. f application
The company specialises in microfinance, with a focus on rural areas and Joint Liability Group funding. Its performance has been steadily improving, and it has kept NPAs under control. The business has also recorded a significant increase in profit in the last few years.
The business approach of the company encourages financial inclusion by catering to low-income groups in 321 districts across 18 states and union territories. Muthoot Microfinance has expanded its activities throughout North, East, and West India during the last five years, expanding its customer base and gross loan portfolio while recording a collection efficiency of 95.84% for 2023.
The company had debt securities of ₹1370.2 crore and borrowings (excluding debt securities) at ₹5123.0 crore as of March 31, 2023. The business also has had negative cash flows and may continue to do so as a result of its operating, investing, and financing operations.
As of March 31, 2023, the corporation had 1,172 branches, 10,227 employees, and 2.77 million active clients. The company benefits from organic development and the transition away from the unorganised segment as a proxy for the organisation of the financial lending market. Its net margins and ROE have been remarkable in the last year, and its ROA of 1.92% is higher than the industry average.
MFL, the Corporate Promoter, is heavily regulated in the financial services industry. Any perceived non-compliance by Promoters or Directors could harm the company's reputation, business, operational performance, and prospects.
Check out the financial performance of Muthoot Microfin for recent years:
|Rs 4,184 crore
|Rs 684 crore
|Rs 7.05 crore
|Rs 5,592 crore
|Rs 833 crore
|Rs 47.40 crore
|Rs 8,529 crore
|Rs 1,429 crore
|Rs 164 crore
Muthoot Microfin has Spandana Spoorthy Financial Limited, Ujjivan Small Finance Bank Limited, Credit Access Grameen Limited and Bandhan Bank Limited as its peers. Take a look at their performances:
|Spandana Spoorthy Financial Limited
|Ujjivan Small Finance Bank Limited
|Credit Access Grameen Limited
You can apply for the Muthoot Microfin Ltd. IPO in these ways:
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
What are the opening and closing dates for the Muthoot Microfin IPO?
Muthoot Microfin IPO will open for subscription on December 18 and close on December 20.
What is the price band for Muthoot Microfin IPO?
The price band for Muthoot Microfin IPO is ₹277 to ₹291 per share.
Who is taking part in the OFS?
Under the OFS, promoters Thomas John Muthoot, George Muthoot, Preethi John Muthoot, Remmy Thomas and investor Greater Pacific Capital will offload shares.
What is the minimum and maximum lot size for the Muthoot Microfin IPO?
The minimum lot size is 1 and it can go up to 13.
What will be the promoter shareholding in Muthoot Microfin after the IPO?
The promoter shareholding in Muthoot Microfin after the IPO will reduce from 69.08% to 55.47%.
Who are Muthoot Microfin IPO Lead Managers?
ICICI Securities, Axis Capital, JM Financial and SBI Capital Markets are the book-running lead managers of the Muthoot Microfin IPO.
Who is the registrar of the issue?
Kfin Technologies is the registrar for Muthoot Microfin IPO.
When will the Muthoot Microfin IPO allotment take place?
The finalisation of the basis of allotment for Muthoot Microfin IPO will be done on December 21, and the allotted shares will be credited to investors’ demat accounts by December 22.
When and where will the Muthoot Microfin shares be listed?
The equity shares of Muthoot Microfin are proposed to be listed on December 26, 2023, on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).