Muthoot Microfin IPO: Issue opens on December 18, sets prices band at Rs 277-291/share

13 Dec 2023 , 09:36 AM

Kochi-based Muthoot Microfin has announced its initial public offering (IPO) with a price band set at Rs 277-291 per share. The IPO, valued at Rs 960 crore, is poised to open for subscription on December 18, 2023, and will conclude on December 20, 2023, presenting a limited window for potential investors.

Key Dates to Remember:

• Anchor Book Opening: December 15, 2023
• IPO Subscription Period: December 18 to December 20, 2023
• Basis of Allotment: December 21, 2023
• Initiation of Refunds: December 22, 2023
• Credit of Shares to Demat: December 22, 2023
• Listing Date: December 26, 2023

Offer Details: Muthoot Microfin’s IPO comprises a fresh issue of Rs 760 crore shares, alongside an offer-for-sale (OFS) of shares worth Rs 200 crore by existing shareholders. Notably, investor Greater Pacific Capital WIV will divest shares worth Rs 50 crore, while the promoters—Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George—will collectively sell shares worth Rs 150 crore.

Greater Pacific Capital has earmarked Rs 10 crore worth of shares for its employees at a discounted rate of Rs 14 per share, offering an enticing proposition for the company’s workforce.

Utilization of Proceeds: The net fresh issue proceeds, estimated at Rs 760 crore, are earmarked for augmenting Muthoot Microfin’s capital base. This strategic move aligns with the company’s vision to meet future capital requirements, positioning it for sustained growth and financial resilience.

Investment Details:

• Minimum Bid: 51 equity shares
• Retail Investors: Minimum investment of Rs 14,841 for 51 shares; Maximum investment capped at Rs 1,92,933 for 663 shares (up to Rs 2 lakh investment allowed)
• Categories: 50% reserved for qualified institutional buyers, 15% for high net worth individuals, and 35% for retail investors.

Lead Managers: The book running lead managers for this IPO are ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets. Their involvement underscores the robustness of the offering and instills confidence in potential investors.

Muthoot Microfin is dedicated to empowering women in rural areas by providing micro-loans. With a strong focus on financial inclusion, the organization has carved a niche for itself in the microfinance sector, contributing to the economic upliftment of communities.