Muthoot Microfinance is entering the primary investors’ market with its IPO on Monday, December 18. It is a subsidiary of Muthoot Fincorp Limited, which is a part of The Muthoot Group, a multi-faceted business conglomerate comprising 20 diversified divisions.
The price band for the issue has been fixed in the range of ₹277-291 per equity share. The three-day bidding for the IPO would close on December 20.
The company is looking to raise ₹960 crore through the public offer. The company had reduced the IPO size from ₹1,350 crore mentioned in the DRHP.
The issue is a combination of a fresh issue of 2.61 crore shares aggregating to Rs 760.00 crores and an offer for sale of 0.69 crore shares aggregating to Rs 200.00 crores.
The minimum lot size for an application is 51 Shares. The minimum amount of investment required by retail investors is ₹14,841. The IPO consists of a fresh issue of ₹760 crore and an offer-for-sale (OFS) of ₹200 crore. Under the OFS, promoters Thomas John Muthoot, George Muthoot, Preethi John Muthoot, Remmy Thomas, and investor Greater Pacific Capital will offload shares.
Greater Pacific Capital-based Muthoot Microfin has reserved Rs 10 crore worth of shares for its employees who will get those shares at a discount of Rs 14 per share to the final issue price.
Half of the issue size has been reserved for qualified institutional buyers, 15 percent for high net-worth individuals, and the balance 35 percent portion in the offer is set aside for retail investors.
Muthoot Microfin IPO will list on BSE and NSE with a tentative listing date fixed as Tuesday, December 26, 2023.
ICICI Securities Limited, Axis Capital Limited, Jm Financial Limited, and SBI Capital Markets Limited are the book-running lead managers of the Muthoot Microfin IPO, while Kfin Technologies Limited is the registrar for the issue.
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