Muthoot Microfin set to debut on bourses tomorrow: Check latest GMP and other details

Muthoot Microfin Limited, a subsidiary of Muthoot Pappachan Group, is gearing up for its stock market debut as its Initial Public Offering (IPO) witnessed robust demand, with an overall subscription rate of 12.30 times. The IPO, a book-built issue of Rs 960 crores, comprises a fresh issue of 2.61 crore shares amounting to Rs 760 crores and an offer for sale of 0.69 crore shares totaling Rs 200 crores.

The subscription numbers reflect strong investor interest across categories, with the retail segment subscribing 8 times, the Qualified Institutional Buyers (QIB) category at an impressive 18.35 times, and the Non-Institutional Investors (NII) category registering a substantial 13.87 times subscription by December 20, 2023 (Day 3).

The bidding for the Muthoot Microfin IPO commenced on December 18, 2023, and concluded on December 20, 2023. The allotment process was finalised on Thursday, December 21, 2023. The IPO is set to be listed on both BSE and NSE on December 26, 2023.

Priced in the band of Rs 277 to Rs 291 per share, the Muthoot Microfin IPO garnered attention with a minimum lot size of 51 shares. Retail investors needed a minimum investment of Rs 14,841, while the minimum lot size for small Non-Institutional Investors (sNII) was 14 lots (714 shares), amounting to Rs 207,774, and for big Non-Institutional Investors (bNII), it was 68 lots (3,468 shares), totaling Rs 1,009,188.

ICICI Securities Limited, Axis Capital Limited, JM Financial Limited, and SBI Capital Markets Limited served as the book running lead managers for the IPO, with Kfin Technologies Limited acting as the registrar.

The IPO, offering 32,646,046 shares, allocated 20 per cent to QIB, 15 per cent to NII, 35 per cent to RII, and 30 per cent to Anchor investors. Retail Individual Investors (RIIs) will receive a minimum of 51 shares, while small and big Non-Institutional Investors (sNII and bNII) will get a minimum of 714 shares, subject to oversubscription.

As of the last update on December 25, 2023, the Grey Market Premium (GMP) for the Muthoot Microfin IPO stands at Rs 30. With a price band of Rs 291, the estimated listing price is Rs 321 (cap price + today's GMP), projecting a gain of 10.31 per cent per share.

About Muthoot Microfin

Founded in April 1992, Muthoot Microfin Limited focuses on providing micro-loans to female customers, particularly in rural regions of India. The company offers various loan products, including group loans, individual loans, life betterment solutions, health and hygiene loans, and secured loans in the form of gold loans and Muthoot Small & Growing Business (MSGB) loans. With a customer-centric approach, the company has ventured into digital payment methods through its "Mahila Mitra" mobile application.

As of March 31, 2023, Muthoot Microfin has 2.77 million active customers, 1,172 branches in 321 districts across 18 states and union territories in India, and a workforce of 10,227 employees.

Objects of the Issue

The net proceeds from the fresh issue will be utilised to augment the capital base, meeting future capital requirements. The company aims to benefit from listing its equity shares on the stock exchanges, enhancing brand image, and creating a public market for equity shares in India.

The promoters of Muthoot Microfin Limited include Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, Nina George, and Muthoot Fincorp Limited.