Muthoot Microfin IPO: Muthoot Microfin is in the process of listing in the stock market. Muthoot Microfin, a subsidiary microfinance company of Muthoot Pappachan Group, has filed a draft paper with the stock market regulator SEBI (Securities and Exchange Board of India) to bring an IPO. The company is preparing to raise Rs 1350 crore from the market through IPO.
NBFC-MFI (NBFC-MFI) Muthoot Microfin will raise Rs 950 crore in IPO by issuing fresh issue ie new shares. While Rs 400 crore will be raised through offer for sale. That is, existing investors will sell their stake in the IPO. With an asset base of Rs 9,200 crore, Muthoot Microfin is one of the top five NBFC-MFI companies in the country. So the company is the fourth NBFC-MFI in terms of gross loan portfolio.
The company has said in the draft paper that it can raise Rs 190 crore through pre-IPO placement. If this placement happens, then the size of the fresh issue can be reduced. In the financial year 2022-23, the company had a profit of Rs 203 crore, whereas in its first year, a net profit of Rs 80 crore was seen. There has been an improvement in the gross non-performing ratio of the company. By the end of March 2023, the gross NPA has been 2.9 percent, which used to be 6.3 percent a year ago.
According to the latest draft paper filed with SEBI, the company’s promoter Thomas John Muthoot will reduce his stake through offer for sale. At the same time, Greater Pacific Capital will sell its shares worth Rs 100 crore.
The promoter’s stake in the company is 9.72 per cent while Muthoot Fincorp’s stake is 54.16 per cent. Apart from this, Greater Pacific holds 25.15 per cent, Creation Investment India holds 8.33 per cent stake in the company while the rest is held by the company’s employees. ICICI Securities, Axis Capital, JM Financial and SBI Capital Markets are the book running lead managers to the IPO.
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