Muthoot Microfin files revised draft papers with SEBI for Rs 1,350 crore IPO

3 Jul 2023 , 10:11 AM

The Muthoot Pappachan Group’s microfinance subsidiary, Muthoot Microfin Ltd has re-filed documents to raise Rs 1350 crore through initial public offer (IPO). The company has filed draft papers in 2018.

The issue comprises fresh issue of equity shares of upto Rs 950 crore and an offer for sale of upto Rs 400 crore by its promoters and shareholders.

The Offer for Sale (OFS) includes a maximum of Rs 70 crores each by Thomas John Muthoot, Thomas Muthoot, and Thomas George Muthoot. Additionally, it comprises a maximum of Rs 30 crores each by Preethi John Muthoot, Remmy Thomas, Nina George, and up to Rs 100 crores by Greater Pacific Capital WIV Ltd.

The company may also conduct pre-IPO placement to raise around Rs 190 crore. In the event that this placement is carried out, it will lead to a reduction in the size of the fresh issue.

The proceeds generated from the fresh issue will be utilized to enhance the company’s capital base, enabling it to meet future capital requirements effectively.

The Book Running Lead Managers for the issue of Muthoot Microfin are ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets.

Muthoot Microfin is promoted by Muthoot Fincorp, which holds the position of the fourth-largest Non-Banking Financial Company-Microfinance Institution (NBFC-MFI) in India based on its gross loan portfolio as of December 2022. It also holds the third-largest position among NBFC-MFIs in South India. Additionally, Muthoot Microfin takes pride in being the largest MFI in Kerala in terms of market share. It plays a significant role in Tamil Nadu as well, where it enjoys an impressive market share of almost 16 percent as of December 2022.