Muthoot Microfin IPO: Issue Booked 11.45 Times on Final Day

Muthoot Microfin Limited, the microfinance arm of the Muthoot Pappachan Group, commenced its initial public offering (IPO) today, on December 18, 2023. The IPO subscription window is set to conclude on December 20, 2023.

Functioning as a microfinance institution (NBFC-MFI) in India, Muthoot Microfin specializes in extending micro-loans to women entrepreneurs, primarily emphasizing rural areas across India.

IPO Price Band

The initial public offering (IPO) of Muthoot Microfin Limited has been fixed at Rs 277 to Rs 291 per equity share. The company aims to raise Rs 960 crore from its initial offer.

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At 4:40 PM, investors oversubscribed the IPO by 11.45 times, booking 27.91 crores of shares out of the available 2.43 crore shares. Particularly, the retail portion saw an oversubscription of 7.48 times. It amounted to 8.97 crore shares. Meanwhile, Non-Institutional Investors (NII) subscribed to 13.18 times the allotted shares of 51.44 lakh. The QIB portion, on the other hand, was oversubscribed by 17.47 times against the available 68.59 lakh shares.

IPO Size

Muthoot Microfin aims to raise Rs 960 crore from this public issue, intending to obtain Rs 760 crore through a fresh issue. Additionally, Rs 200 crore has been reserved for Offer for Sale (OFS).

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Offer Details

The company plans to raise Rs 960 crore through the IPO, comprising 2.61 crore shares in the offer.

Additionally, existing shareholders, including investor Greater Pacific Capital WIV, intend to sell 0.69 crore shares. Greater Pacific Capital WIV selling shares worth Rs 50 crore.

Promoters Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George will sell the remaining shares worth Rs 150 crore.

Lot Size

Retail investors can bid for a minimum of 51 equity shares and in multiples of 51 thereafter. It will result in a minimum investment of Rs 14,127. At the upper band, the bidding amount will rise to Rs 14,841.

Company Financials

For the fiscal year ending March FY23, the Kochi-based microfinance institution recorded a 246 percent YoY surge in net profit. It amounted to Rs 163.9 crore. Correspondingly, the firm’s revenue witnessed a substantial 71.6 percent increase, reaching Rs 1,428.8 crore during the same period.

In the six months concluding September FY24, the profit after tax surged significantly, marking a 16.5-fold increase to Rs 205.2 crore compared to the year-ago period. Concurrently, net interest income experienced a substantial 65.6 percent jump during this same timeframe.

Book Running Lead Managers

ICICI Securities Limited, Axis Capital Limited, JM Financial Limited, and SBI Capital Markets Limited are serving as the book running lead managers for the Muthoot Microfin IPO. KFin Technologies Limited acting as the registrar for the issue.

_{Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.}