Muthoot Microfin IPO: Institutional Investors Buy Rs 285 Cr Shares via Anchor Book, Issue Opens on Dec 18

Microfinance institution Muthoot Microfin is making headlines in the financial world as it gears up for its much-anticipated initial public offering (IPO). The company recently conducted its anchor book, attracting a slew of institutional investors and successfully raising nearly Rs 285 crore. This substantial investment comes just a day ahead of the IPO’s opening, scheduled for December 18, 2023. In this blog, we’ll delve into the details of Muthoot Microfin’s anchor book and what investors can expect from this promising IPO.

Also See: Muthoot Microfin IPO GMP

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Anchor Book Attracts Top-tier Institutional Investors

One of the key highlights leading up to Muthoot Microfin’s IPO is the impressive participation of over 20 institutional investors in its anchor book. These investors include renowned names such as 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, among others.

Muthoot Microfin IPO

Furthermore, several notable insurance companies have also joined the fray, underscoring the wide interest in the microfinance company. 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 are among the insurance giants that invested in Muthoot Microfin via the anchor book.

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Allocation and Pricing Details

Muthoot Microfin officially disclosed that it has allocated 97,93,812 equity shares to anchor investors at a price of Rs 291 per equity share. This allocation demonstrates the confidence and interest that institutional investors have in the company’s growth prospects.

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IPO Overview

Muthoot Microfin’s IPO is set to raise a total of Rs 960 crore. This offering is divided into two components: a fresh issue of shares worth Rs 760 crore by the company and an offer for sale (OFS) of Rs 200 crore worth of shares by promoters and investors. Prominent figures within the company, including Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George, will be selling shares worth Rs 150 crore through the OFS. Additionally, investor Greater Pacific Capital WIV will sell Rs 50 crore worth of shares in the OFS.

Greater Pacific Capital WIV currently holds a 19.06 percent stake in Muthoot Microfin, while investment management firm Creation Investments India LLC holds 9.01 percent. The majority of the company’s ownership, a little more than 69 percent, is held by its promoters.

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Utilization of Proceeds

Muthoot Microfin has outlined its plans for the net proceeds generated from the IPO. The primary objective is to strengthen its capital base to meet future capital requirements. This strategic allocation of funds underscores the company’s commitment to sustainable growth and its dedication to furthering its mission in the microfinance sector.

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Muthoot Microfin IPO

Conclusion

The Muthoot Microfin IPO has generated substantial interest among institutional investors and insurance companies, reflecting their confidence in the company’s prospects. With the IPO set to open on December 18, 2023, investors and financial enthusiasts will be watching closely to see how this microfinance institution fares in the public markets. As Muthoot Microfin takes its next steps towards growth and expansion, it’s clear that it has already made a significant mark in the financial world.

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