13-Dec-2023
2 mins read
The initial public offering (IPO) for Muthoot Microfin is a book-built issue valued at Rs 960 crores. This IPO consists of a fresh issue of 2.61 crore shares amounting to Rs 760 crores and an offer for sale of 0.69 crore shares worth Rs 200 crores. The subscription window for the Muthoot Microfin IPO opens on December 18, 2023, and will close on December 20, 2023. The allocation of shares is anticipated to be completed by December 21, 2023. The shares of Muthoot Microfin are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) around December 26, 2023.
The price range for the IPO is set between Rs 277 and Rs 291 per share. For retail investors, the minimum order quantity is 51 shares, translating to a minimum investment of Rs 14,841. For small Non-Institutional Investors (sNII), the minimum investment is for 14 lots (714 shares), totalling Rs 207,774, while for big Non-Institutional Investors (bNII), it is 68 lots (3,468 shares), which equals Rs 1,009,188.
The IPO’s book-running lead managers are ICICI Securities Limited, Axis Capital Limited, JM Financial Limited, and SBI Capital Markets Limited. Kfin Technologies Limited has been appointed as the registrar for the issue.
Muthoot Microfin Limited Product Portfolio
Established in April 1992, Muthoot Microfin Limited operates as a subsidiary of the Muthoot Pappachan Group. It specialises in offering microfinance solutions primarily to women in India’s rural areas. The company’s portfolio includes a variety of loan products. These encompass group loans tailored for livelihood enhancements, like income-generating loans and Pragathi loans, which serve as supplementary working capital for existing customers. They also offer individual loans. Additionally, Muthoot Microfin provides loans for life improvement purposes, such as financing for cell phones, solar lights, and home appliances. For health and sanitation needs, they offer loans aimed at enhancing sanitary conditions. The company also extends secured loans, including gold loans and Muthoot Small & Growing Business (MSGB) loans, as part of its diverse financial services.
The Objectives of Muthoot Microfin Limited IPO
The company plans to allocate the net proceeds from the fresh issue to bolster its capital base to support future capital needs. As outlined in its Memorandum of Association, the primary goals, along with related subsidiary objectives, include (i) supporting the company’s ongoing business operations and (ii) financing new activities that are intended to be funded through these net proceeds. Additionally, the company anticipates benefits from listing its equity shares on stock exchanges. This move is expected to enhance its brand recognition among current and prospective customers and establish a public trading market for its equity shares within India.
Financial Performance of Muthoot Microfin Limited (In Crore)
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 8,529.20 | 5,591.46 | 4,183.85 |
| Revenue | 1,446.34 | 842.94 | 696.28 |
| Profit After Tax | 163.89 | 47.4 | 7.05 |
| Net Worth | 1,625.85 | 1,336.58 | 889.89 |
| Reserves and Surplus | 1,282.15 | 1,040.10 | 642.84 |
Important Dates for Muthoot Microfin Limited IPO (Tentative)
| IPO Date | December 18, 2023 to December 20, 2023 |
| Listing Date | Yet to be announced |
| Face Value | Rs 10 per share |
| Price Band | Rs 277 to Rs 291 per share |
| Lot Size | 51 Shares |
| Total Issue Size | 32,989,690 shares (aggregating up to Rs 960.00 Cr) |
| Fresh Issue | 26,116,838 shares (aggregating up to Rs 760.00 Cr) |
| Offer for Sale | 6,872,852 shares of Rs 10 (aggregating up to Rs 200.00 Cr) |
| Employee Discount | Rs 14 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 116,837,249 |
| Shareholding post issue | 142,954,087 |
Timetable of Muthoot Microfin Limited IPO
| IPO Open Date | Monday, December 18, 2023 |
| IPO Close Date | Wednesday, December 20, 2023 |
| Basis of Allotment | Thursday, December 21, 2023 |
| Initiation of Refunds | Friday, December 22, 2023 |
| Credit of Shares to Demat | Friday, December 22, 2023 |
| Listing Date | Tuesday, December 26, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 20, 2023 |
Muthoot Microfin IPO Lot Size
Investors have the option to place bids starting with a minimum of 51 shares and then in subsequent multiples of that number. The following table outlines the smallest and largest investments possible for both retail investors and High net net Net-Worth Individuals (HNIs), detailing both the number of shares and the corresponding monetary amounts.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 51 | Rs 14,841 |
| Retail (Max) | 13 | 663 | Rs 192,933 |
| S-HNI (Min) | 14 | 714 | Rs 207,774 |
| S-HNI (Max) | 67 | 3,417 | Rs 994,347 |
| B-HNI (Min) | 68 | 3,468 | Rs 1,009,188 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Key Performance Indicator
Muthoot Microfin IPO Market Cap is Rs 4960.82 Cr and P/E (x) is 20.75.
| KPI | Values |
| P/E (x) | 20.75 |
| Post P/E (x) | 25.38 |
| Market Cap (Rs Cr) | 4960.82 |
| ROE | 11.06% |
| Debt/Equity | 3.99 |
| EPS (Rs) | 11.98 |
| RoNW | 10.08% |
Promoters of the Company
Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, Nina George and Muthoot Fincorp Limited are the promoters of the company.
The Muthoot Microfin IPO Promoter Holding
| Shareholding Pre Issue | 69.08% |
| Shareholding Post Issue | 55.47% |
Muthoot Microfin Limited IPO Lead Manager(s)
Lead managers for Muthoot Microfin Limited IPO are ICICI Securities Limited, Axis Capital Limited, Jm Financial Limited, SBI Capital Markets Limited,
How to Apply for Muthoot Microfin Limited IPO
Wait for the public issue to open for subscription, then click on this link to apply for the Muthoot Microfin Limited IPO with Bigul: https://ipo.bonanzaonline.com/.
How to Check the Allotment Status of Muthoot Microfin Limited IPO
The registrar for Muthoot Microfin Limited IPO is Kfin Technologies Limited. To check your allotment status, please click on this link: https://kosmic.kfintech.com/ipostatus/
FAQs
- What is Muthoot Microfin Limited’s IPO?
Muthoot Microfin Limited IPO is a public offering valued at Rs 960 crores, comprising a fresh issue of 2.61 crore shares (Rs 760 crores) and an offer for sale of 0.69 crore shares (Rs 200 crores).
- When is the IPO subscription period?
The subscription period for the IPO is from December 18, 2023, to December 20, 2023.
- What is the expected date for share allotment?
The share allotment is anticipated to be finalized by December 21, 2023.
- What are the details regarding the listing of Muthoot Microfin shares?
It is anticipated that Muthoot Microfin shares will make their debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) approximately on December 26, 2023.
- How is the IPO priced for Muthoot Microfin?
The IPO for Muthoot Microfin is priced within a range, with the shares being offered at a price band of Rs 277 to Rs 291 each.
- What is the minimum investment for retail investors?
Retail investors can invest with a minimum of 51 shares, amounting to approximately Rs 14,841.
- Who are the lead managers for the IPO?
The IPO’s lead managers are ICICI Securities Limited, Axis Capital Limited, JM Financial Limited, and SBI Capital Markets Limited.
- What are Muthoot Microfin Limited’s main business activities?
Muthoot Microfin Limited focuses on providing microfinance solutions, especially to women in rural India, including various types of loans for livelihood, health, sanitation, and secured loans.
- How will the IPO proceeds be used?
The proceeds are intended to augment the company’s capital base for future requirements and support ongoing operations and new activities.
- How can I apply for the Muthoot Microfin Limited IPO?
You can apply for the IPO during the subscription period through platforms like Bigul. The application link is: Apply for Muthoot Microfin Limited IPO.
- How do I check my allotment status for the IPO?
The allotment status can be checked through the registrar, Kfin Technologies Limited, at Check Allotment Status here.
- What is the financial performance of Muthoot Microfin Limited?
For the year ended March 31, 2023, the company reported total assets of Rs 8,529.20 crore, revenue of Rs 1,446.34 crore, and a profit after tax of Rs 163.89 crore.
- What are the reservation quotas in the IPO?
The IPO includes reservations for different investor categories: QIB shares (not more than 50% of the net issue), retail shares (not less than 35%), and NII (HNI) shares (not less than 15%).
- Who are the promoters of Muthoot Microfin Limited?
The promoters include Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, Nina George, and Muthoot Fincorp Limited.