Muthoot Microfin IPO: Muthoot Microfin Limited IPO Details

Muthoot Microfin IPO: Investing in the Muthoot Microfin IPO may be an exciting prospect for those seeking exposure to the thriving microfinance industry in India. In this blog, we delve into the details of IPO, including its dates, price band, objectives, financial information, and more.

Also See: Muthoot Microfin IPO GMP

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Microfinance institutions play a pivotal role in financial inclusion in India, particularly in rural and underserved areas. One such institution, Muthoot Microfin Limited, is set to make its debut in the capital markets through an Initial Public Offering (IPO). Founded in April 1992, Muthoot Microfin is a subsidiary of the renowned Muthoot Pappachan Group and has been making strides in providing micro-loans to female customers with a primary focus on rural regions.

Muthoot Microfin IPO Details

The Muthoot Microfin IPO is a book-built issue with a total size of ₹960.00 crores. It consists of a fresh issue of 2.61 crore shares amounting to ₹760.00 crores and an offer for sale of 0.69 crore shares totaling ₹200.00 crores. The IPO opens for subscription on December 18, 2023, and closes on December 20, 2023, with the basis of allotment scheduled for December 21, 2023. The anticipated listing date is December 26, 2023.

Here are the key details at a glance:

ParameterDetails
IPO NameMuthoot Microfin IPO
IPO DateDecember 18, 2023, to December 20, 2023
Basis of AllotmentDecember 21, 2023
Listing DateDecember 26, 2023
Face Value₹10 per share
Price Band₹277 to ₹291 per share
Lot Size51 Shares
Total Issue Size32,989,690 shares (₹960.00 Cr)
Fresh Issue26,116,838 shares (₹760.00 Cr)
Offer for Sale6,872,852 shares (₹200.00 Cr)
Employee Discount₹14 per share
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Shareholding Pre Issue116,837,249
Shareholding Post Issue142,954,087

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Muthoot Microfin IPO Reservation

Muthoot Microfin Limited IPO offers a reservation for different investor categories:

  • QIB (Qualified Institutional Buyers): Not more than 50% of the Net Issue
  • Retail Investors: Not less than 35% of the Net Issue
  • NII (Non-Institutional Investors or HNIs): Not less than 15% of the Net Issue

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Muthoot Microfin Limited IPO Lot Size

Investors can bid for a minimum of 51 shares and in multiples thereof. Here is a summary of the lot size and investment amounts:

ApplicationLotsSharesAmount
Retail (Min)151₹14,841
Retail (Max)13663₹192,933
S-HNI (Min)14714₹207,774
S-HNI (Max)673,417₹994,347
B-HNI (Min)683,468₹1,009,188

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Promoter Holding

The promoters of Muthoot Microfin include Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, Nina George, and Muthoot Fincorp Limited. The shareholding pre-issue stands at 69.08%, which is expected to reduce to 55.47% post-issue.

Objectives of the IPO

The primary objective of the IPO is to augment the capital base to meet future capital requirements. The funds raised will be utilized to support the company’s existing business activities and proposed activities funded from the net proceeds. Additionally, listing the equity shares on stock exchanges is expected to enhance the company’s brand image and create a public market for the shares in India.

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

Financial Performance

Muthoot Microfin Limited has displayed impressive financial growth. Its revenue increased by a remarkable 71.58%, and its profit after tax (PAT) saw a substantial rise of 245.77% between the financial years ending on March 31, 2023, and March 31, 2022.

Period Ended31 Mar 202331 Mar 202231 Mar 2021
Assets8,529.205,591.464,183.85
Revenue1,446.34842.94696.28
Profit After Tax163.8947.407.05
Net Worth1,625.851,336.58889.89
Reserves and Surplus1,282.151,040.10642.84
Total Borrowing6,493.183,996.613,015.66
Amount in ₹ Crore

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About Muthoot Microfin Limited

Muthoot Microfin Limited, a subsidiary of the Muthoot Pappachan Group, was founded in 1992 with a mission to provide micro-loans to female customers, particularly in rural India. The company’s offerings include group loans for livelihood solutions, life betterment solutions, health and hygiene loans, and secured loans in the form of gold loans and Muthoot Small & Growing Business (MSGB) loans.

Muthoot Microfin IPO

The introduction of the “Mahila Mitra” mobile application in 2021 has allowed for digital payment methods, making financial transactions more accessible to customers. As of March 31, 2023, the company boasts 2.77 million active customers, operates in 321 districts across 18 states and union territories, and employs 10,227 people.

Key Performance Indicators

  • Market Cap: ₹4,960.82 Crores
  • P/E (Price to Earnings Ratio): 24.96x
  • Post P/E: 25.38x
  • ROE (Return on Equity): 11.06%
  • Debt/Equity Ratio: 3.99
  • EPS (Earnings per Share): ₹11.98
  • RoNW (Return on Net Worth): 10.08%

Muthoot Microfin IPO Registrar and Lead Manager(s)

Registrar: Kfin Technologies Limited

Lead Managers:

  • ICICI Securities Limited
  • Axis Capital Limited
  • JM Financial Limited
  • SBI Capital Markets Limited

Muthoot Microfin IPO Timeline

  • IPO opens on December 18, 2023
  • IPO closes on December 20, 2023
  • Basis of Allotment on December 21, 2023
  • Refunds initiated on December 22, 2023
  • Shares credited to Demat on December 22, 2023
  • Listing Date: December 26, 2023
  • Cut-off time for UPI mandate confirmation: 5 PM on December 20, 2023
Muthoot Microfin IPO

The Muthoot Microfin IPO represents an opportunity to invest in a company dedicated to financial inclusion and providing vital support to rural communities in India. However, as with any investment, it’s crucial to conduct thorough research and

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