Muthoot Microfin IPO will open for subscription from 18 December 2023. The company aims for an issue size of ₹960 Cr through this IPO.
Company Overview
| Full name | Muthoot Microfin Limited |
| Sector | Finance |
| Industry | Finance-NBFC |
| Company Website | https://muthootmicrofin.com/ |
About Company
Muthoot Microfin is dedicated to extending micro-loans, predominantly to women customers, with a primary focus on fostering income generation in rural pockets of India. Employing a joint liability group model, it exclusively caters to women in lower-income households, championing the cause of financial inclusion. As of December 31, 2022, it stands as the fourth-largest Non-Banking Financial Company-Microfinance Institution (NBFC-MFI) in India based on its substantial gross loan portfolio. Furthermore, in South India, it claims the third-largest position among NBFC-MFIs, securing the top spot in Kerala concerning MFI market share and playing a pivotal role in Tamil Nadu with an impressive 16% market share.
As of March 31, 2023, the company’s gross loan portfolio stands at INR 92,082.96 million, serving a commendable 2.77 million active customers. A dedicated workforce of 10,227 employees operates across 1,172 branches, strategically positioned in 321 districts within 18 states and union territories of India. Muthoot Microfin has meticulously expanded its branch network, with a strategic focus on underserved rural markets with growth potential, ensuring seamless access for its valued customers.
Backing its mission are noteworthy investors, Creation Investments India LLC and Greater Pacific Capital WIV Ltd. Both have demonstrated their commitment since 2016 and 2021, respectively, collectively holding a significant 33.48% of the issued, subscribed, and paid-up pre-offer Equity Share capital. This robust support further solidifies the company’s position in the dynamic landscape of microfinance, reinforcing its commitment to empowering women and fostering financial growth in rural India.
The Objectives of the Issue
The Company proposes to utilise the Net Proceeds from the Fresh Issue towards augmenting the capital base to meet future capital requirements. The main objects and objects incidental and ancillary to the main objects set out in the Memorandum of Association enable the company:
- to undertake our existing business activities,
- to undertake the activities proposed to be funded from the Net Proceeds. Further, the Company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges, including enhancing the brand image among existing and potential customers and creating a public market for the Equity Shares in India.
Muthoot Microfin IPO Timetable
| IPO Opening date | 18 December 2023 |
| IPO Closing | 20 December 2023 |
| Basis of Allotment | 21 December 2023 |
| Initiation Refund | 22 December 2023 |
| Credit to Demat Account | 22 December 2023 |
| Listing Date | 26 December 2023 |
Muthoot Microfin IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹960 Cr – 32,989,690 shares |
| Fresh Issue | ₹760 Cr – 26,116,838 shares |
| Offer for sale | ₹200 Cr – 6,872,852 shares |
| Face value | ₹10 per share |
| Price Band | ₹277 to ₹291 per share |
| Lot size | 51 Shares |
| Employee Discount | ₹14 per share |
| Shareholding pre-issue | 116,837,249 |
| Shareholding post-issue | 142,954,087 |
| Listing Exchange | BSE & NSE |
Muthoot Microfin IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 51 | ₹14,841 |
| Retail (Max) | 13 | 663 | ₹192,933 |
| S-HNI (Min) | 14 | 714 | ₹207,774 |
| S-HNI (Max) | 67 | 3,417 | ₹994,347 |
| B-HNI (Min) | 68 | 3,468 | ₹1,009,188 |
Muthoot Microfin IPO Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Muthoot Microfin Financial Performance
| FY 2021 | FY 2022 | FY 2023 | H1 FY 2024 | |
| Revenue | 684.17 | 832.51 | 1,428.76 | 1,042.33 |
| Expenses | 687.23 | 778.22 | 1,233.47 | 772.63 |
| Net income | 7.05 | 47.40 | 163.89 | 205.26 |
| Margin (%) | 1.03 | 5.69 | 11.47 | 19.69 |
Muthoot Microfin Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 0.62 | 3.94 | 11.66 |
| PE ratio | – | – | 23.76 – 24.96 |
| RONW (%) | 0.79 | 3.55 | 10.08 |
| NAV | 77.94 | 97.74 | 112.63 |
| EBITDA (%) | 47.83 | 51.13 | 55.19 |
| Debt/Equity | 3.39 | 2.99 | 3.99 |
Company Promoters
- Thomas John Muthoot
- Thomas Muthoot
- Thomas George Muthoot
- Preethi John Muthoot
- Remmy Thomas
- Nina George
- Muthoot Fincorp Limited.
Promoter Holding
| Pre Issue Share Holding | 69.08% |
| Post Issue Share Holding | 55.47% |
Muthoot Microfin Lead Manager(s)
- ICICI Securities Limited
- Axis Capital Limited
- JM Financial Limited
- SBI Capital Markets Limited
Muthoot Microfin Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Tel: +91 40 6716 2222
E-mail: muthoot.ipo@kfintech.com
Website: www.kfintech.com
Muthoot Microfin Contact Details
MUTHOOT MICROFIN LIMITED
5th Floor, Muthoot Towers,
M.G. Road, Ernakulam 682 035,
Kerala, India
Phone: +91 48 4427 7500
Email: info@muthootmicrofin.com
Website: www.muthootmicrofin.com
Muthoot Microfin IPO Allotment Status
Muthoot Microfin IPO allotment status will be available on the KFin Tech website. Click on this link to get allotment status.
Final thoughts
Muthoot Microfin IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
