Muthoot Microfin IPO to open on December 18; check price band and other details

The initial public offering (IPO) of Muthoot Microfin will open for bidding on Monday, December 18. The lender is offering its shares in the range of Rs 277-291 apiece, with a lot size of Rs 51 equity shares. The three-day bidding for the issue will conclude on Wednesday, December 20.

Founded in April 1992, Muthoot Microfin, a subsidiary of Muthoot Pappachan Group, provides micro-loans to female customers with a focus on rural regions. The company provides group loans for livelihood solutions, individual loans, life betterment solutions; health and hygiene loans; secured loans in the form of gold loans and more.

Muthoot Microfin is looking to raise Rs 960 crore, which includes a fresh issue of Rs 760 crore and an offer-for-sale of up to 6,872,852 equity shares, amounting to Rs 200 crore. The anchor book for the issue will open on Friday, December 15.

The net proceeds from the issue shall be utilised toward augmenting the capital base to meet future capital requirements; to undertake existing business activities. Muthoot Microfin expects to receive the benefits of listing the equity shares on the stock exchanges.

Muthoot Microfin has 2.77 million active customers, 1,172 branches in 321 districts in 18 states and union territories in India, and employs 10,227 people as of March 31, 2023. In 2021, the company launched the "Mahila Mitra" mobile application, which enables digital payment methods such as QR codes, websites, SMS-based links and voice-based payment methods.

The company has reserved shares worth Rs 10 crore for its eligible employees, who will get a discount of Rs 14 per share. Of the net offer, 50 per cent shares are reserved for qualified institutional bidders (QIBs), while retail investors will get 35 per cent of the net offer. Remaining 15 per cent shares shall be allocated towards the non-institutional investors of the issue.

Muthoot Microfin's revenue increased by 72 per cent to Rs 1,446.34 crore in the financial year 2022-23, while its profit after tax (PAT) zoomed 245 per cent to Rs 163.89 crore for the year ended on March 31, 2023.

ICICI Securities, Axis Capital, JM Financial and SBI Capital Markets are the book running lead managers of the Muthoot Microfin IPO, while Kfin Technologies is the registrar for the issue. Shares of the company will be listed on both BSE and NSE on December 26, Tuesday.

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