Muthoot Microfin IPO GMP

Muthoot Microfin IPO: Muthoot Microfin Limited, a microfinance company, is gearing up for a significant milestone by launching its mainline Initial Public Offering (IPO) at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This IPO is scheduled to open from December 18th to December 20th, 2023, and it has generated considerable interest among investors. In this blog, we will delve into the Grey Market Premium (GMP) associated with the Muthoot Microfin IPO and explore the company’s strengths, objectives, and other crucial details.

Also See: All IPO GMP Price Today

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Muthoot Microfin IPO GMP Analysis

The Grey Market Premium (GMP) for the Muthoot Microfin IPO is a key indicator that investors and traders closely monitor. It provides insights into the expected price movement of the IPO shares once they are listed on the stock exchange. As of the latest update, the Muthoot Microfin IPO GMP stands at ₹27. This means that the unofficial market is pricing the IPO shares at a premium of ₹27 over the IPO price, which is set in the range of ₹277 to ₹291 per share.

Let’s take a look at the historical GMP data for the past few days: [ Last Updated:26 Dec, 2023; 09:05]

GMP DateIPO PriceGMPSub2 Sauda RateEstimated Listing Price
26-12-2023₹291.00₹271000/14000₹318 (9.28%)
25-12-2023₹291.00₹271000/14000₹318 (9.28%)
24-12-2023₹291.00₹301200/16800₹321 (10.31%)
23-12-2023₹291.00₹301200/16800₹321 (10.31%)
22-12-2023₹291.00₹301200/16800₹321 (10.31%)
21-12-2023₹291.00₹20800/11200₹311 (6.87%)
20-12-2023₹291.00₹22900/12600₹313 (7.56%)
19-12-2023₹291.00₹351400/19600₹326 (12.03%)
18-12-2023₹291.00₹552100/29400₹346 (18.90%)
17-12-2023₹291.00₹803100/43400₹371 (27.49%)
16-12-2023₹291.00₹803100/43400₹371 (27.49%)
15-12-2023₹291.00₹883400/47600₹379 (30.24%)
14-12-2023₹291.00₹953700/51800₹386 (32.65%)
13-12-2023₹291.00₹1054100/57400₹396 (36.08%)
12-12-2023₹–₹160₹160 (0%)

Based on the GMP data, it is evident that the premium associated with the Muthoot Microfin IPO has been fluctuating in recent days, but it remains positive. The estimated listing price of ₹318 per share represents a potential gain of 9.28% for investors who subscribe to the IPO.

Also See: Upcoming IPO in India

Understanding IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) is the price at which an IPO is traded in an unofficial and unregulated grey market before its official listing on the stock exchange. It reflects the market sentiment and provides an indication of how the IPO shares might perform on the day of listing. A positive GMP suggests that the IPO is likely to list at a profit, while a negative GMP indicates the potential for a listing at a discount.

However, it is essential to note that the IPO GMP is subject to extreme volatility and may not always accurately predict the actual listing price. Therefore, making an investment decision solely based on the GMP can be risky. Investors should conduct thorough research, analyze the company’s fundamentals, and consider various factors before deciding to invest in the Muthoot Microfin IPO.

Also Read: When Can a Company Go for IPO in India

About Muthoot Microfin

Muthoot Microfin is a microfinance company that primarily focuses on providing micro loans to women customers. As of December 31, 2023, it holds the distinction of being the fourth largest Non-Banking Financial Company-Microfinance Institution (NBFC-MFI) in India in terms of its gross loan portfolio. Additionally, it ranks as the third largest NBFC in South India.

Muthoot Microfin IPO

The company’s core customer base comprises individuals from the low-income group residing in rural areas, with the loans aimed at supporting income-generating activities. Muthoot Microfin offers a range of loan products, including group loans for livelihood, Pragathi loans, individual loans, life betterment loans for products like solar lighting, household appliances, health and hygiene loans, and secured gold loans.

As of March 31, 2023, the company’s total loan portfolio stands at a substantial ₹92,082.96 million. Muthoot Microfin serves 2.77 million active customers through 1,172 branches located in 321 districts across 18 states and union territories.

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Muthoot Microfin IPO Strengths

  1. Market Leadership: Muthoot Microfin boasts of being the third-largest NBFC in South India and holds the largest market share in Kerala, with a 16% market share in Tamil Nadu.
  2. Extensive Geographic Presence: With a presence in 321 districts across 18 states and union territories, Muthoot Microfin has established a strong pan-India footprint.
  3. Rural Focus: The company primarily targets rural regions, aligning with the broader business conglomerate Muthoot Pappachan.
  4. Portfolio Quality: Muthoot Microfin maintains a healthy portfolio quality and has robust risk management practices in place.
  5. Experienced Management Team: The company is led by an experienced management team that upholds strong corporate governance principles.

Also Read: Azad Engineering Announces IPO Price Band at Rs 499-524; Subscription to Open on December 20

Muthoot Microfin IPO Objective

The primary objective of the IPO is to augment the company’s capital base to meet future capital requirements. The funds raised through the fresh issue will enable the company to:

  1. Continue its existing business activities.
  2. Undertake activities proposed to be funded from the Net Proceeds.

Additionally, the listing of Equity Shares on the Stock Exchanges is expected to enhance the brand image among existing and potential customers and create a public market for the Equity Shares in India.

Also Read: Kross Ltd Files ₹500 Crore IPO with SEBI, Eyes Capital Market Expansion; Check Details

Muthoot Microfin IPO Important Dates

For investors interested in participating in the Muthoot Microfin IPO, here are the important dates to keep in mind:

  • IPO Open Date: December 18, 2023
  • IPO Close Date: December 20, 2023
  • Basis of Allotment Finalization Date: December 21, 2023
  • Refunds Initiation: December 22, 2023
  • Credit of Shares to Demat Account: December 22, 2023
  • IPO Listing Date: December 26, 2023
Muthoot Microfin IPO

Investors and market enthusiasts will closely monitor the IPO journey, from subscription levels to listing performance, to gauge the overall success and potential of the Muthoot Microfin IPO. It is important to make investment decisions based on a holistic assessment of the company’s prospects and the prevailing market conditions, rather than solely relying on the GMP.

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