Muthoot Microfin Raises Rs 285 Crore Ahead IPO

16 Dec 2023 , 07:56 PM

Microfinance institution Muthoot Microfin successfully raised approximately Rs 285 crore through its anchor book, which was launched for a day on December 15, just before the commencement of its IPO. Over 20 institutional investors participated in the anchor book, including notable names like WCM International, JNL Multi-Manager International, North Carolina Supplemental Retirement Plans, Clearwater International Fund, Florida Retirement System, Morgan Stanley, Integrated Core Strategies, Copthall Mauritius Investment, and Societe Generale.

Several insurance companies, such as ICICI Prudential Life Insurance, HDFC Life Insurance, Bajaj Allianz Life Insurance, Kotak Mahindra Life Insurance, SBI General Insurance, ICICI Lombard General Insurance, Cholamandalam MS General Insurance, and Pramerica Life Insurance, also invested in the microfinance company through the anchor book.

Muthoot Microfin finalized the allocation of 97,93,812 equity shares to anchor investors at a price of Rs 291 per equity share. The company is set to launch its Rs 960 crore initial public offering (IPO), which will be open for subscription from December 18 to 20. The price band for the IPO has been set at Rs 277-291 per share.

The IPO comprises a fresh issue of shares worth Rs 760 crore by Muthoot Microfin and an offer for sale (OFS) of Rs 200 crore worth of shares by promoters and investors. Promoters Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George will sell shares worth Rs 150 crore, while investor Greater Pacific Capital WIV will offload Rs 50 crore of shares in the OFS.

Greater Pacific Capital WIV currently holds a 19.06 percent stake in the company, with investment management firm Creation Investments India LLC holding 9.01 percent, and the remaining stake of just over 69 percent being held by promoters. Muthoot Microfin plans to use the net issue proceeds primarily to enhance its capital base to meet future capital requirements.