The Muthoot Microfin IPO is set with a price band ranging from ₹277 to ₹291 per equity share, with the subscription period beginning on December 18 and concluding on December 20. The floor price is 27.70 times the face value, while the cap price is 29.10 times the face value. The price-to-earnings ratio based on diluted EPS for the financial year 2023 is 23.76 times at the lower end and 24.96 times at the higher end of the price band.
The IPO lot size is 51 equity shares, and multiples of 51 equity shares can be applied for thereafter. The allocation for qualified institutional buyers (QIBs) is set at not more than 50%, non-institutional investors (NIIs) have a minimum of 15%, and retail investors are reserved at least 35%. Eligible employees participating in the employee reservation portion can avail a discount of ₹14 per equity share.
The IPO comprises a fresh issue of shares up to ₹760 crore and an offer for sale (OFS) of equity shares with a face value of ₹10 each, totaling ₹200 crore. The IPO size is ₹960 crore. Promoter selling shareholders include Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, Nina George, and investor selling shareholder Greater Pacific Capital WIV Ltd.
The company aims to utilize the net proceeds from the new issue to bolster its capital base for future requirements. The expected date for the basis of allotment is December 21, with refunds initiated on December 22, and shares credited to the demat accounts on the same day. The anticipated listing date on BSE and NSE is December 26.
Muthoot Microfin’s listed peers include Equitas Small Finance Bank, Ujjivan Small Finance Bank, CreditAccess Grameen, Spandana Sphoorty Financial, Bandhan Bank, Suryoday Small Finance Bank, and Fusion Micro Finance.
The book running lead managers for the IPO are ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets, with Kfin Technologies as the registrar of the issue.
