Muthoot Microfin IPO is a public offering of shares by Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, Nina George and Muthoot Fincorp Ltd. The IPO will open on December 18 and will close on December 20. The price band is ₹277 to ₹291 per share and the lot size is 51 shares. The issue size is ₹960. crore. The shares are expected to be listed on NSE, BSE on December 26 (^). Some additional information that you may find useful are: Company is e fifth largest NBFC-MFI in India in terms of gross loan portfolio as of March 31, 2023 (Source: CRISIL Report). Also is 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 March 31, 2023 (Source: CRISIL Report). Company has 3.19 million active customers, as of September 30, 2023. Gross Loan portfolio in 6MFY24 / FY23 / FY22 at Rs10867 cr / Rs9208.3 cr / Rs6254.9 cr.: (**) - based on higher price band (^) indicative date
Key Pointers of Muthoot Microfin IPO:
Promoters of the company are Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, Nina George and Muthoot Fincorp Ltd Currently promoters hold 69.08% stake in the company. While post-equity promoters stake will be 55.47%
- Company aims to raise between Rs 960 to 960 crs through this IPO.
- The net proceeds of the issue will be utilized to Augmenting the capital base to meet future capital requirements
- Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 15-Dec-23.
- Price band for the IPO has been fixed at Rs 277 to 291 per share and bid lot are in multiple of 51 shares. The implied market cap post-issue at Rs 4,759 to 4,961 crs.
- As per the tentative schedule, allotment date of this IPO is most likely on December 21 and share are expected to be listed on NSE, BSE on December 26.
- Company has direct peer competition in India'a Microfinance Segment, In Listed space peers includes Equitas Small Finance Bank, Ujjivan Small Finance Bank, CreditAccess Grameen, Spandana Sphoorty Financial, Bandhan Bank, Suryoday Small Finance Bank, Fusion Micro Finance amongst others.
- Axis Capital, ICICI Securities, JM Financial, SBI Capital Markets has been appointed as Merchant Banker to the issue. Kfin Technologies Ltd. has been appointed as official registrar of the issue.
About Muthoot Microfin Limited
Muthoot Microfin LimitedEstablished in 1992 is microfinance institution providing micro-loans to women customers (primarily for income generation purposes) with a focus on rural regions of India. Products comprise, among others, (i) group loans for livelihood solutions such as income generating loans, Pragathi loans (which are interim loans made to existing customers for working capital and income generating activities) and individual loans; (ii) life betterment solutions including mobile phones loans; (iii) health and hygiene loans such as sanitation improvement loans; and (iv) secured loans in the form of gold loans and our Muthoot Small & Growing Business loans.
Company is e fifth largest NBFC-MFI in India in terms of gross loan portfolio as of March 31, 2023 (Source: CRISIL Report). Also is 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 March 31, 2023 (Source: CRISIL Report). Company has 3.19 million active customers, as of September 30, 2023. Gross Loan portfolio in 6MFY24 / FY23 / FY22 at Rs10867 cr / Rs9208.3 cr / Rs6254.9 cr.
About Industry
The microfinance industry’s gross loan portfolio increased at a compounded annual growth rate of 21% since the financial year 2018 to reach approximately ₹3.3 trillion in the third quarter of the financial year 2023. The growth rate for non-banking financial companies – microfinance institutions, is the fastest as compared to other player groups. Going forward, the microfinance industry will continue to see strong growth due to the Government’s continued focus on strengthening the rural financial ecosystem, robust credit demand, and higher-ticket loans disbursed by microfinance lenders
| Source: SEBI, BSE, NSE, DRHP, Inox India, Industry Data |
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Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.
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