Muthoot Microfin IPO Day 1: Check live subscription details here

18 Dec 2023 , 12:47 PM

The Muthoot Microfin initial public offering (IPO) opened for subscription today and will be available for public bidding until December 20. The company successfully secured Rs 285 crore from 26 anchor investors prior to the IPO launch. Interested individuals can subscribe to the IPO by clicking here. 

As of 12:40 PM on day 1, the IPO has been subscribed to 32%. Notably, the retail portion has attracted 57% of bids, while non-institutional investors have subscribed to 16%. The employee portion has also witnessed a strong response, achieving a 59% subscription rate.

The IPO includes a fresh issue of Rs 760 crore and an offer-for-sale (OFS) of Rs 200 crore. In the OFS, promoters Thomas John Muthoot, George Muthoot, Preethi John Muthoot, Remmy Thomas, and investor Greater Pacific Capital will be divesting their shares.

Muthoot Microfin holds the position of the fourth-largest microfinance company in India based on its gross loan portfolio. It is the third-largest in South India and the leading microfinance institution in Kerala with a substantial market share. The company is also a significant player in Tamil Nadu, holding an almost 16% share.

The price range for Muthoot Microfin shares in the IPO is set at Rs 277-291 apiece, with a face value of Rs 10 per share. Interested investors can bid for a minimum of 51 shares in one lot.

The primary objective of the IPO is to enhance the capital base of Muthoot Microfin. In accordance with RBI regulations, microfinance institutions are required to maintain a minimum capital adequacy of 15%, consisting of tier-I capital and tier-II capital.