Muthoot Microfin IPO subscribed 11.52 times on final day. Check details

Muthoot Microfin IPO subscribed 11.52 times on final day. Check details

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The Rs 960-crore initial public offering (IPO) of Muthoot Microfin was subscribed 11.52 times as on the final day. The issue was booked 2.83 times on Tuesday and 0.83 times on the opening day.

According to consolidated data available on the NSE around this time, the issue attracted over 28.09 crore share bids against the issue size of 2,43,87,447 shares. The quota reserved for retail individual investors (RIIs) was subscribed 7.61 times. The issue was subscribed 13.20 times in the NII category. As for qualified institutional buyer (QIB) category, the issue was subscribed 17.47 times.

Muthoot Microfin IPO price band
Muthoot Microfin is offering its shares in the range of Rs 277-291 apiece. Investors can bid for a minimum of 51 shares in one lot.

Muthoot Microfin IPO GMP
According to market analysts, the current GMP of Muthoot Microfin has come down to Rs 35 in the unlisted market from Rs 60 on the previous day.

About Muthoot Microfin IPO
The IPO comprises a fresh issue of Rs 760 crore and an offer-for-sale (OFS) of Rs 200 crore. Under the OFS, promoters Thomas John Muthoot, George Muthoot, Preethi John Muthoot, Remmy Thomas, and investor Greater Pacific Capital will offload shares.

Muthoot Microfin IPO anchor investor details
Ahead of the IPO, the company has bagged Rs 285 crore from 26 anchor investors.

About Muthoot Microfin
Muthoot Microfin is the fourth-largest microfinance company in India in terms of gross loan portfolio. It is the third-largest in south India, with the largest in Kerala in terms of market share, and a key player in Tamil Nadu with an almost 16% share.

Muthoot Microfin IPO review
Analysts suggested investors can subscribe to the issue but with caution. The company can be vulnerable to interest rate fluctuations and likely competition within the microfinance space.

“The company has a market leadership with a pan India presence. Also, it is a part of the prestigious Muthoot Pappachan group. We believe that valuations of the company are fairly priced and recommend a Subscribe-Long Term rating to the IPO,” said Anand Rathi.

“Despite some risks, Muthoot Microfin’s attractive valuation, with a P/E of 20.50x and a P/BV of 2.09x, positions it favourably in the current market landscape. Therefore, we recommend considering this IPO with a measured approach, acknowledging both its potential and inherent risks,” said Swastika Investmart.

“The issue is available at a P/BVPS of 2.6x, which appears fairly priced as compared to listed peers. Hence, we recommend subscribing to the issue for listing gains,” said Canara Bank Securities.

Muthoot Microfin IPO proceeds
The microfinance firm aims to augment its capital base through the proceeds from the initial public offering. As per the RBI regulations, microfinance institutions are required to maintain a minimum capital adequacy of 15% consisting of tier-I capital and tier-II capital.

Muthoot Microfin Financials
As of March 2023, Muthoot Finance’s gross loan portfolio stood at Rs 9200 crore, and it had 2.77 million active customers. For FY23, the company reported a revenue of Rs 1430 crore and a profit of Rs 164 crore.

In the six months ended September 2023 period, the company’s revenue increased 72% year-on-year to Rs 1042 crore, while profit jumped multifold to Rs 205 crore.

Muthoot Microfin IPO BRLMs
ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets are the book-running lead managers to the issue.

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Muthoot Microfin

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