Muthoot Microfin Limited IPO Details

Muthoot Microfin Limited, the Muthoot Pappachan Group’s microfinance subsidiary, is going to launch its Initial Public Offering (IPO) on 18th December 2023. The company plans to raise a total of Rs 960 crore through a combination of fresh issue of equity shares worth Rs 760 crore and an offer-for-sale of Rs 200 crore. The company has set the IPO price band in the range of Rs 277 to Rs 291 per share at a face value of Rs 10 per share.

Established in 2010, Muthoot Microfin Limited obtained the microfinance institution license as a non-banking financial company from the RBI in 2015. The company currently has 1,172 branch across 18 states in India with over 10,000 employees. According to the company, it has a portfolio size of over Rs 9,200 crore with a borrower base of 2.7 million women entrepreneurs. The company provides micro-loans to female customers primarily in rural areas.

The company aims to utilise the net proceeds from the fresh issue towards augmenting the capital base to meet future capital requirements, and objects as such mentioned in the memorandum. Additionally, the company expects to receive the benefits of listing on the stock exchanges including enhancing the brand image.

IPO details

• Muthoot Microfin IPO is a mainline issue that will debut on the NSE and BSE.
• On a whole, the company is offering 32,989,690 shares aggregating up to Rs 960 crore.
• The issue consists of a fresh issue of 26,116,838 equity shares aggregating up to Rs 760 crore.
• The offer-for-sale component comprises a sale of 6,872,852 shares totalling to Rs 200 crore.
• The price band is set at Rs 277 to Rs 291 per share at a face value of Rs 10 per share.
• The employees of the company get a discount of Rs 14 per share.
• The Promoters selling shares are Thomas John Muthoot (up to Rs 16.36 crore), Thomas Muthoot (up to Rs 16.38 crore), Thomas George Muthoot (up to Rs 16.36 crore), Preeti John Muthoot (up to Rs 33.74 crore), Remmy Thomas (up to Rs 33.3 crore), and Nina George (up to Rs 33.76 crore).

Important dates

The public issue will remain open for subscription for 3 days during the market timings.

Reservation & lot size

• The IPO reserves a minimum of 35% of the net issue for the retail investors, minimum 15% for the Non-Institutional investors while the QIBs portion should not exceed 50% of the net issue.
• The lot size is 51 shares. Meaning the investors can bid for a minimum of 51 shares and in the multiples of that thereafter.
• The retail investors can bid for 1-13 lots and NIIs can bid for 14-68 lots.
• When calculated at upper price band, the minimum investment per lot comes to Rs 14,841.

Company Financials

Check more IPO details here.