Muthoot Microfin To Launch IPO Worth Rs 960 Crore On December 18

The IPO includes a fresh issue of equity shares worth Rs 760 crore, and an offer-for-sale (OFS) of up to Rs 200 crore, and will be open for bidding till December 20, 2023.

The firm will finalise the allotment of the listing shares by December 21 and eligible investors will receive these shares in the demat accounts by December 22.

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Muthoot Microfin is set to debut in the stock market and will launch the initial public offering (IPO) worth Rs 960 crore on December 18, 2023. The microfinance subsidiary of Muthoot Pappachan group, the firm’s maiden issue will close for bidding on December 20, 2023.

The firm will accept bids from anchor investors on December 15, 2023. The IPO includes a fresh issue of equity shares worth Rs 760 crore, and an offer-for-sale (OFS) of up to Rs 200 crore, reported PTI. The company is yet to reveal the price band decided for the issue. 

The firm intends to use the funds from the issue to augment its capital base and cater to the future capital requirements of the company. Promoters 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 as part of the OFS, while the investor, Greater Pacific Capital WIV, would be offloading shares worth Rs 50 crore in the OFS.

Currently, Muthoot Microfin holds 69.08 per cent stake in the company, while the remaining 28.53 per cent share is owned by public shareholders, including Greater Pacific Capital, which holds 19.06 per cent share, and Creation Investments India LLC, which controls 9.01 per cent stake in the firm. 

The company has also set aside shares worth Rs 10 crore for its employees, who might be offered these shares at a discount to the issue price. The book-running lead managers of the issue include ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets. The firm will finalise the allotment of the listing shares by December 21 and eligible investors will receive these shares in the demat accounts by December 22. The company will make its debut in the markets on December 26, 2023.

Muthoot Microfin is promoted by Muthoot Fincorp, which is the flagship company of the Muthoot Pappachan group and is the third-largest gold loan player in the industry.