 "Muthoot Microfin")
Muthoot Microfin, a Non-Banking Financial Company (NBFC-MFI) will open its Initial Public Offering (IPO) of equity shares on December 18, 2023, and close on December 20, 2023, and has fixed a price band at Rs 277 to Rs 291 per equity share with a face value of Rs 10 each. The Kerala-based subsidiary of Muthoot Fincorp plans to raise Rs 960 crore from the IPO.
The funds are expected to augment the capital base of the company. Out of the total, the company plans to raise Rs 760 crore through the sale of fresh equity and Rs 200 crore via Offer for Sale (OFS).
The OFS comprises equity shares by Thomas John Muthoot amounting to Rs 16.36 crore, Rs 16.38 crore from Thomas Muthoot, Rs 33.74 crore from Preethi John Muthoot, Rs 33.39 crore from Remmy Thomas and Rs 33.77 crore from Nina George. Also, investor Greater Pacific Capital WIV will offload Rs 50 crore in the business.
Post the IPO, the family’s stake in the company will fall to 50.5 per cent from 59 per cent. Promoters will be down to 5 per cent from 10 per cent.
The price band is fixed at Rs 277 to Rs 291 per equity share and bids can be made for a minimum of 51 equity shares and in multiples of 51 equity shares thereafter.
The funds will be used to strengthen the capital base of the company to meet its future capital requirements. The CRAR of the firm currently stands at 20.46 per cent as of September 30, 2023.
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About 50 per cent of the net offer is reserved for qualified institutional buyers (QIB), 15 per cent will be for non-institutional investors and 35 per cent is for retail investors.
The profitability of the company surged to Rs 205.26 crore in the second quarter of FY24 from Rs 12.47 crore in the year-ago period.
The Assets Under Management (AUM) of the company was Rs 10,870.67 crore in the period under review from Rs 7449.47 crore in Q2FY23.
ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets are the book-running lead managers to the issue. While KFin Technologies is the registrar.
