Muthoot Microfin IPO Fully Subscribed on Day 2, Strong Retail Interest

19 Dec 2023 , 01:49 PM

The initial public offering (IPO) of Muthoot Microfin witnessed robust demand as it was fully subscribed after the second day of bidding on December 19. Investors showed considerable interest in the offering, with bids pouring in for 4,48,67,352 equity shares against 2,43,87,447 shares available. Click here to subscribe the IPO

Retail investors took the lead, subscribing 2.99 times the allotted quota of shares. The non-institutional investors’ portion achieved a subscription rate of 1.56 times, while the employees’ portion was booked 2.40 times. Qualified institutional buyers contributed to 0.1 percent of the shares from the reserved portion.

The IPO, set to close on December 20, has a price band of Rs 277-291 per share. Muthoot Microfin aims to raise Rs 960 crore from the offering, comprising a fresh issue of 2.61 crore shares worth Rs 760 crore and an offer-for-sale of 0.69 crore shares worth Rs 200 crore by existing shareholders.

The promoters, including Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George, will sell shares worth Rs 150 crore. Investor Greater Pacific Capital WIV will offload shares worth Rs 50 crore.

The Kochi-based microfinance institution recorded an impressive 246 percent YoY growth in net profit at Rs 163.9 crore for the fiscal year ended March 2023. Revenue during the same period increased by 71.6 percent to Rs 1,428.8 crore. For the six months ended September FY24, profit after tax surged 16.5-fold to Rs 205.2 crore, with net interest income rising by 65.6 percent.