Muthoot Microfin Limited IPO

 

Muthoot Microfin Limited IPO (Muthoot Microfin IPO) Detail

Muthoot Microfin IPO is a Rs 960.00 crore book-built issue. The offering consists of a fresh issue of 2.61 crore shares worth Rs 760.00 crores and an offer for sale of 0.69 crore shares worth Rs 200.00 crores.

Muthoot Microfin IPO last GMP is ₹60, last updated Dec 20th 2023

Timeline:

IPO Open Date	Monday, December 18, 2023
IPO Close Date	Wednesday, December 20, 2023
Basis of Allotment	Thursday, December 21, 2023
Initiation of Refunds	Friday, December 22, 2023
Credit of Shares to Demat	Friday, December 22, 2023
Listing Date	Tuesday, December 26, 2023
Cut-off time for UPI mandate confirmation	5 PM on December 20, 2023

Lot Size for Muthoot Microfin IPO

Application	Lots	Shares	Amount
Retail (Min)	1	51	₹14,841
Retail (Max)	13	663	₹192,933
S-HNI (Min)	14	714	₹207,774
S-HNI (Max)	67	3,417	₹994,347
B-HNI (Min)	68	3,468	₹1,009,188

Muthoot Microfin Holding Pre Vs Post Issue

Share Holding Pre Issue	69.08%
Share Holding Post Issue	55.47%

About Muthoot Microfin: 

Muthoot Microfin Limited, a subsidiary of Muthoot Pappachan Group, was founded in April 1992 to provide micro-loans to female customers in rural India.

The following services are provided by the company:

• Income-generating loans, Pragathi loans (bridging loans to existing customers for working capital and income-generating activities), and individual loans are examples of group loans for livelihood solutions.

• Loans for cell phones, solar lights, and household appliances are examples of life-improvement solutions.

• Loans for health and hygiene, such as loans to improve sanitary facilities

• Gold loans and Muthoot Small & Growing Business ("MSGB") loans are secured loans.

Financials:

Period Ended	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	8,529.20	5,591.46	4,183.85
Revenue	1,446.34	842.94	696.28
Profit After Tax	163.89	47.40	7.05
Net Worth	1,625.85	1,336.58	889.89
Reserves and Surplus	1,282.15	1,040.10	642.84
Total Borrowing	6,493.18	3,996.61	3,015.66

Amounts in crore

Important indicator

Indicator	Values
P/E (x)	24.96
Post P/E (x)	25.38
Market Cap (₹ Cr.)	4960.82
ROE	11.06%
Debt/Equity	3.99
EPS (Rs)	11.98
RoNW	10.08%

Review: The company is in the micro finance business with a major thrust on rural areas and Joint Liability Group funding. It has posted steady growth in its performance and has kept NPAs under control. Based on FY24 annualised earnings, the issue appears reasonably priced. Investors may park funds for the medium to long-term rewards.