Muthoot Microfin, Backed by Muthoot Pappachan Group, Makes Stock Market Debut at 5.39% Discount

26 Dec 2023 , 10:08 AM

Muthoot Microfin, supported by the Muthoot Pappachan Group, entered the stock markets with its shares listing at a 5.39% discount. The shares debuted at Rs 275.30 on the NSE and Rs 278 on the BSE, marking a 4.47% dip from the issue price of Rs 291 per share.

The company’s initial public offering (IPO) witnessed a subscription rate of 11.52 times, with qualified institutional buyers (QIBs) taking the lead by bidding 17.47 times their allocated quota. Retail investors subscribed 7.61 times, while high net-worth individuals (HNIs) bid 13.2 times the reserved portion.

Muthoot Microfin, a non-banking financial company backed by the Muthoot group, specializes in providing micro-loans to female customers, with a specific focus on rural areas in India. As of March 31, 2023, it holds the fifth position among NBFC-MFIs (micro-finance institutions) based on the gross loan portfolio and stands as the third-largest in southern India.

The funds raised through the public offer will be utilized to enhance the company’s capital base, addressing future capital requirements arising from the anticipated growth in Muthoot Microfin’s business and assets.