Muthoot Microfin IPO Subscription Day 1: The initial public offering (IPO) of the Kochi-based Muthoot Microfin Limited opened today, while the offering is scheduled to close on December 20. Through the public issue, the company aims to raise Rs 960 crore; with the net proceeds, Muthoot Microfin intends to increase its capital base in order to meet future capital requirements.
The Muthoot Microfin IPO is among seven public offerings that will open for subscription this week. The other IPOs opening this week are those of Motison Jewellers, Suraj Estate Developers, Happy Forgings, Credo Brands, RBZ Jewellers, and Azad Engineering. These are worth Rs 151 crore, Rs 400 crore, Rs 1008 crore, Rs 550 crore, Rs 100 crore, and Rs 740 crore, respectively.
Muthoot Microfin IPO subscription status
By 10:24 AM on day one of bidding, the public issue has been subscribed 0.06 times whereas its retail portion has been subscribed 0.15 times. The NII portion of the public issue has been subscribed 0.04 times.
Muthoot Microfin IPO price:
The microfinance company has fixed Muthoot Microfin IPO price band at Rs 277 to Rs 291 per equity share.
Muthoot Microfin IPO size:
The company aims to raise Rs 960 crore from this public issue out of which Rs 760 crore is aimed via fresh issue while Rs 200 croer is reserved for OFS (offer for sale).
Muthoot Microfin IPO lot size:
A bidder will be able to apply in lots and one lot of the IPO comprises 51 company shares.
Muthoot Microfin IPO allotment date:
In the wake of T+3 listing rule, most likely date for share allocation is 21st December 2023.
Muthoot Microfin IPO registrar:
Kfin Technologies Limited has been appointed as official registrar of the public offer.
Muthoot Microfin IPO listing:
The public issue is proposed for listing on BSE and NSE.
Muthoot Microfin IPO listing date:
The likely date for share listing is 26th December 2023.
What Should Investors Do?
Giving ‘subscribe for medium to long term’ tag to the Muthoot Microfin IPO, Shreyansh Shah, Research Analyst at StoxBox said, “Muthoot’s group loans (including income-generating loans and Pragathi loans) are based on a group lending model, catering exclusively to women. An informal JLG (typically comprising between eight to 45 members) provides joint and several guarantees for loans obtained by each member of the JLG. While the lender’s operations have historically been concentrated in South India, they have in recent years expanded into North, East, and West India and have a total of 707 branches across North, West, and East India as of September 30, 2023, representing 52.8% of its total branches as of September 30, 2023. Moving forward, the NBFC expects a significant portion of its future geographic expansion to include rural areas in these regions of India and intends to grow the branches in four key states: Uttar Pradesh, Bihar, Rajasthan, and Punjab, which are underpenetrated. As the lender will utilize the net proceeds of the fresh equity shares issue to augment its Tier-I capital base, its capital adequacy will enhance and lead to a stable leverage position. At the current P/BV multiple of 2.3x, we believe the company is fairly valued and advise investors to “Subscribe” from a medium to long-term perspective.”
Giving ‘subscribe for listing gain’ tag to the mainboard IPO, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, “Microfinance companies are doing well on Dalal Street these days and the public issue may get benefit of this working theme. Hence, I am expecting positive debut of Muthoot Microfin shares on Dalal Street. However, the theme might not work well after a certain time. So, my suggestion on investors is to apply for listing gains only becuase there might be some consolidation in Muthoot Microfin shares after listing.”