Muthoot Microfin Ltd IPO: Check IPO Date, Price, Details | Espresso

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Muthoot Microfin Ltd IPO opens on December 18. Check IPO Details Issue Date Price

December 15, 2023
Muthoot Microfin Ltd IPO opens on December 18. Check IPO Details Issue Date Price

Muthoot Microfin Limited is coming out with a fresh public issue to raise Rs 960 crores from the market.

Below are the details of the Muthoot Microfin Limited IPO:

  • Issue opens – December 18 (Monday)
  • Issue closes – December 20 (Wednesday)
  • Issue size – Rs 960 crores
  • Price band – Rs 277 to 291 per equity share
  • Bid lot – 51 shares and in multiples thereof

And here are some details of the company and further details on the Muthoot Microfin Limited IPO.

Company details:

  • Promoted by Muthoot Pappachan Group, Muthoot Microfin Limited (“Muthoot Microfin”) was incorporated on April 6, 1992. The RBI has granted NBFC-MFI status to the company with effect from March 25, 2015. Muthoot Microfin is a microfinance institution providing micro-loans to women customers (primarily for income generation purposes) with a focus on rural regions of India. Muthoot Microfin is the 5th largest NBFC-MFI in India in terms of gross loan portfolio as of March 31, 2023. They are also the 3rd largest amongst NBFC-MFIs in South India in terms of gross loan portfolio, the largest in Kerala in terms of MFI market share, and a key player in Tamil Nadu with an almost 16% market share.
  • As of September 30, 2023, company’s gross loan portfolio amounted to ?10,867.07 crore. Their business model helps in driving financial inclusion, as they serve customers who belong to low-income groups. As of September 30, 2023, they have 0.32 crore active customers, who are serviced by 12,297 employees across 1,340 branches in 339 districts in 18 states and union territories in India.
  • Company’s loan products comprise: Life betterment solutions including mobile phones loans, solar lighting product loans and household appliances product loans; Secured loans in the form of gold loans and the Muthoot Small & Growing Business (“MSGB”) loans,Group loans for livelihood solutions such as income generating loans, Pragathi loans and individual loans; Health and hygiene loans such as sanitation improvement loans; 
  • As of September 30, 2023, the gross loan portfolio of their income generating loans amounted to ?10,211.87 crore, representing 93.97% of the total gross loan portfolio. They primarily adopt a joint liability group model which caters exclusively to women in lower income households and is premised on the fact that if such individuals are given access to credit, they may be able to identify new opportunities and supplement and grow their existing income. 
  • To expand their digital collections infrastructure, they launched a proprietary application, called “Mahila Mitra”, in 2021, which facilitates digital payment methods such as QR codes, websites, SMS-based links and voice-based payment methods. As of September 30, 2023, 0.15 crore customers have downloaded the Mahila Mitra application, and 0.25 crore customers have transacted digitally with them.
  • Since December 2021, they have offered digital healthcare facilities to the customers through “e-clinics”. They collaborate with M-Swasth Solutions Pvt Ltd, to set up e-clinics across their branches. As of September 30, 2023, they have set up 460 e-clinics across 460 of their branches, representing 34.33% of their total branches. As of September 30, 2023, 14.40% of their customers have enrolled in their e-clinics, and they have facilitated 98,844 medical consultations and 65,878 teleconsultations. Further, to protect their customers from the risks of natural calamities, they have, since May 2020, also provided natural calamity insurance to their customers.

Issue Size: Rs. 960 crores

Employee Reservation: Equity Shares aggregating upto Rs. 10 Cr

Employee Discount: Rs. 14/- per shares

Issue break-up:

  • QIB – 50% of the net offer – Rs 475.00 crores
  • NIB – 15% of the net offer – Rs 142.50 crores
  • RET – 35% of the net offer – Rs 332.50 crores

Listing: BSE and NSE

Registrar: KFin Technologies Ltd

UPI: All Retail & NII bidders' (bids up to Rs. 5,00,000) applications through brokers are compulsorily in UPI Mode.

Note:

  • Application made using third-party UPI or ASBA Bank A/c are liable to be rejected.
  • The UPI Mandate acceptance time for Retail and NII Bidders (bids up to Rs 5,00,000) shall expire at 5 PM on the closing day of the IPO i.e. Wednesday, December 20, 2023     

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