Muthoot Microfin Ltd IPO: Explore IPO Date, Price, Lot Size, & Details

IPO Details

Bidding Dates

18 Dec '23 - 20 Dec '23

Minimum Investment

₹14,841 / 1 Lots ( 1 Shares )

Price Range

₹277 - ₹291

Maximum Investment

₹192,933 / 13 Lots ( 663 Shares )

Retail Discount

Not Applicable

Issue Size

₹960.00 Cr

Investor category and sub category

Qualified Institutions Buyers | Non-Institutional Buyers | Retail Investors |

IPO Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

Dec 18, 2023

IPO Closing Date

Dec 20, 2023

Basis of Allotment

Dec 21, 2023

Initiation of Refunds

Dec 22, 2023

Credit of Shares to Demat Account

Dec 22, 2023

IPO Listing Date

Dec 26, 2023

UPI Mandate Expiry Date

Dec 20, 2023

IPO Subscription Details

Date	QIB	NII	Retail	Total
Day 1Dec 18, 2023	0.00x	0.65x	1.58x	0.95x
Day 2Dec 19, 2023	0.48x	3.28x	4.31x	3.05x
Day 3Dec 20, 2023	0.50x	4.39x	4.94x	3.61x

IPO Subscription Live Status

Investor Category	Subscription (Times)
Qualified Institutions Buyers	0.50
Non-Institutional Buyers	4.39
Retail Investors	4.94
Total	3.61

About Company

Muthoot Microfin Limited, a prominent finance company in India, specialises in providing micro-loans primarily to female clients, focusing on income generation in rural areas of the country. As of the end of the year FY 2022, according to a CRISIL Report, it ranked as the 4th largest Non-Banking Financial Company-Microfinance Institution (NBFC-MFI) in India based on its gross loan portfolio. In the context of South India, it stands as the third largest NBFC-MFI in terms of gross loan portfolio. Moreover, in Kerala, it is the leading institution in terms of market share in the microfinance sector, and it also holds a significant position in Tamil Nadu with around 16% market share.

By the end of March 2023, Muthoot Microfin Limited's gross loan portfolio reached ₹92,082.96 million. The company's operations are geared towards promoting financial inclusion by catering to the needs of low-income groups. It serves approximately 2.77 million active clients, with the support of 10,227 employees. These clients are managed across 1,172 branches spread over 321 districts in 18 states and union territories within India.

Muthoot Microfin Limited, a key entity within the Muthoot Pappachan Group, stands as the second-largest company in the group by AUM for FY 2023. The company greatly benefits from the group's 50 years of experience in finance and is strongly supported by Muthoot Finance Limited, the main company in the group, which holds a 54.16% stake in it. This association provides strong brand recognition and operational advantages.

Industry Outlook

India's microfinance sector, despite increased household credit penetration, remains largely untapped. The industry has experienced a 21% compound annual growth rate (CAGR) since 2018, indicating significant potential for further expansion.
Research forecasts robust growth for the MFI industry, projecting an 18-20% CAGR from FY 2023 to 2025. Notably, Non-Banking Financial Company Microfinance Institutions (NBFC-MFIs) are expected to outpace this growth, with an anticipated CAGR of 25-30% during the same period.
Digitalisation is set to cut costs and boost efficiency and profits for MFIs, with technology-driven savings and enhanced productivity leading to higher profitability.

Muthoot Microfin Limited IPO Details

Muthoot Microfin Limited IPO Date

The IPO of Muthoot Microfin Limited is open for subscription from December 18, 2023, to December 20, 2023.

Muthoot Microfin Limited IPO's Price Band

Muthoot Microfin Limited’s IPO is a fresh issue and offer for sale IPO of up to ₹960.00 crore. It is a book-building issue. The price range is set to ₹277 to ₹291 per share.

Muthoot Microfin Limited IPO’s Lot Size

The lot size for Muthoot Microfin Limited’s IPO is 51 shares with a minimum investment of ₹14,127.

Muthoot Microfin Limited IPO’s Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

Capital Enhancement: As a Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), regulatory capital adequacy norms are crucial. These norms mandate a minimum Capital to Risk (Weighted) Assets Ratio (CRAR) of 15%, combining Tier I and Tier II Capital. As of March 31, 2023, the company's CRAR was 21.87%, exclusively composed of Tier I Capital.
Offer-Related Costs: The expenses include listing fees, underwriting fees, brokerage, payment to various professionals and banks involved in the offer, and expenses for marketing, advertising, printing, and other incidental charges for listing the Equity Shares on the Stock Exchanges.

Financial Performance

Amount in ₹ million
Particulars	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Assets Under Management	92,082.96	62,549.42	49,867.11
AUM Growth (%)	47.22%	25.43%	3.06%
Disbursement Growth (%)	74.40%	76.24%	(35.42)%
Total Income	14,463.44	8,429.41	6,962.81
Profit After Tax (PAT)	1,638.89	473.98	70.54
Total Borrowings	64,931.76	39,966.09	30,156.58
Cash & Cash Equivalents	7,594.55	7,058.27	5,190.76
Debt to Equity Ratio (x)	3.99	2.99	3.39
Return on Net Worth (%)	10.08%	3.55%	0.79%

How To Check the Allotment Status of Muthoot Microfin Limited’s IPO?

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Log in to the Angel One app
Go to the IPO Section and then to IPO Orders
Select the individual IPO that you had applied for and check the allotment status.
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Contact Details of Muthoot Microfin Limited

Registered office: 13th Floor, Parinee Crescenzo, Bandra Kurla Complex, Bandra East, Mumbai 400 051, Maharashtra, India

Contact Person: Neethu Ajay (Company Secretary and Compliance Officer)

Phone: +91 48 4427 7500

E-mail: info@muthootmicrofin.com

Company Financials

Particulars ( ₹ in million )	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Assets Under Management	92,082.96	62,549.42	49,867.11
AUM Growth (%)	47.22%	25.43%	3.06%
Disbursement Growth (%)	74.40%	76.24%	35.42%
Total Income	14,463.44	8,429.41	6,962.81
Profit After Tax (PAT)	1,638.89	473.98	70.54
Total Borrowings	64,931.76	39,966.09	30,156.58
Cash & Cash Equivalents	7,594.55	7,058.27	5,190.76
Debt to Equity Ratio (x)	3.99	2.99	3.39
Return on Net Worth (%)	10.08%	3.55%	0.79%

Know before investing

Strengths

Muthoot Microfin is India's fourth-largest NBFC-MFI, specialising in micro-loans to rural women, with a strong market presence in Kerala and Tamil Nadu.
The company focuses on rural areas, excelling in microfinance with robust customer growth, retention, and expansion into less penetrated regions.
Muthoot Microfin, part of the diverse Muthoot Pappachan Group, benefits from strong brand recall and strategic synergies in finance and other sectors.
Muthoot Microfin employs a technology-driven, scalable operating model to serve its extensive, remote customer base in India, supported by an 87-member IT team adept in in-house system development and quick adaptations.

Risks

Muthoot Microfin Ltd faces distinct risks in the microfinance sector in India, particularly with higher non-performing assets and write-offs due to its customer base, impacting its financial health and operational results.
As an NBFC-MFI, the RBI regularly inspects Muthoot Microfin Ltd. Non-compliance with RBI's guidelines could lead to penalties and operational limitations, affecting the company's performance.
The company's financial stability is at risk from rising non-performing assets and inadequate provisioning. Unpredicted macroeconomic changes could increase NPAs, negatively affecting financial and operational outcomes.
Muthoot Microfin Ltd is vulnerable to interest rate changes, which could impact its net interest income and margin and in turn, affect its operational results.
The company's financing arrangements, including significant debts as of March 31, 2023, may restrict its operational flexibility and substantially affect its business and financial performance.