Muthoot Microfin IPO Details
Issue Date
18 Dec - 20 Dec'23
Price Range
₹277 - ₹291
Lot Size
51
IPO Size
₹960.51 Cr
Muthoot Microfin IPO Listing Details
Listing On
26 Dec'23
Issue Price
₹291
Listed Price
₹ 275.3
Retail Gain/Listing Gain
▼-5.40%
Schedule of Muthoot Microfin IPO
Start date
18/12/2023
End date
20/12/2023
Allotment of bids
Refund Initiation
Listing on exchange
26/12/2023
Exclusive Conversation About Muthoot Microfin IPO | Kotak Chatroom | Management Discussion
Kotak Neo
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Company Background
Muthoot Microfin Limited is a microfinance institution providing micro-loans to female customers (primarily for income generation purposes) focusing on rural regions of India.
The company is the 5th largest NBFC-MFI in India in terms of gross loan portfolio as of March 31, 2023 (Source: CRISIL Report). They are also the third largest among NBFC-MFIs in South India in terms of gross loan portfolio, the largest in Kerala in terms of MFI market share, and a key player in Tamil Nadu with an almost 16% market share, as of March 31, 2023 (Source: CRISIL Report).
Let's take a look at the competitive strengths and risk factors for Muthoot Microfin Limited:
Competitive Strengths
Market leadership with a pan-India presence
The company has a well-diversified portfolio across 339 districts in 18 states and union territories in India, as of September 30, 2023, and their gross loan portfolio in the top three states, namely Kerala, Karnataka and Tamil Nadu, together accounted for 51.36% of their total gross loan portfolio. Over the past five years, the company has expanded operations in North, East and West India, which has allowed them to diversify their customer base and gross loan portfolio and increase revenue from operations.
Rural-focused operations, with a commitment towards the health and social welfare of customers
The company has a history of serving rural markets with high growth potential in the microfinance segment, and has maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and expansion into underpenetrated areas. Their connection with rural customers has largely been driven by continuously improving their understanding of the financial needs of the rural customer segment and commitment to consistent engagement with the communities they serve.
Robust risk management framework leading to healthy portfolio quality
Their robust risk management framework, customer selection methodologies, and regular end-use and payment monitoring have led to healthy portfolio quality indicators. These include high collection efficiency, stable PAR, and low rates of gross NPAs and net NPAs. The collection efficiency stood at 95.84% and 98.89% for the FY23 and the six months ending September 30, 2023. The company also held the fifth-lowest gross NPA ratio as of March 31, 2023, and by September 30, 2023, the company achieved the third-lowest net NPA ratio among the selected NBFC-MFIs, according to the CRISIL Report.
Risk Factors
- The microfinance industry in India faces certain risks due to the category of customers that it services, which are not generally associated with other forms of lending.
- The business is vulnerable to interest rate risk, and volatility in interest rates could adversely affect the net interest income and net interest margin.
- The company is subject to certain conditions under its financing arrangements, which could restrict its ability to conduct business.
Key Strategies
- Expand geographical footprint and sourcing platform across India.
- Continue to enhance information technology with a focus on customer service, operational efficiency and cost optimisation.
- Leverage the existing branch network to expand customer base and gross loan portfolio.
Muthoot Microfin Key Financials
Here are the key financials for Muthoot Microfin Limited:
How to apply for IPO through ASBA
Kotak Neo
•00m 59 s
How To Apply for Muthoot Microfin Ltd IPO?
Here are the steps to apply for Muthoot Microfin Ltd IPO:
Step 1: Log in to your Kotak Neo Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Muthoot Microfin IPO FAQs
The Muthoot Microfin IPO opens for subscription from 18-12-2023 to 20-12-2023, with a total issue size of ₹960.51 Cr. The IPO price band is ₹277 to ₹291 per share with a lot size of 51. The company aims to list the shares on BSE & NSE on 26-12-2023.
The Muthoot Microfin IPO will open for subscription on 18-12-2023 and will close on 20-12-2023 for investors.
The minimum lot size for the Muthoot Microfin IPO is 51 equity shares, requiring a minimum investment of ₹14841 for retail investors applying in the IPO.
The price band of the Muthoot Microfin IPO has been fixed at ₹277 to ₹291 per equity share.
You can apply for the Muthoot Microfin IPO online through the Kotak Neo Website or the Kotak Neo App using UPI or ASBA during the IPO subscription period.
Muthoot Microfin IPO allotment will take place on [-].
You can check the Muthoot Microfin IPO allotment status online on the registrar’s website or on the NSE and BSE IPO allotment pages using your application number, PAN, or demat account details.
Muthoot Microfin shares will list on the stock exchanges on 26-12-2023.
You can find detailed information about the Muthoot Microfin IPO, including its business operations, financial performance, risk factors, and IPO objectives, in the Draft or Red Herring Prospectus (RHP).
The Muthoot Microfin Limited IPO has an issue size of Rs. 960 crores. The IPO opens for subscription on 18th December 2023 and closes on 20th December 2023.
Muthoot Microfin Limited IPO will be allotted on 21st December 2023.
Muthoot Microfin Limited will list on 26th December 2023.
960 Crore is the issue size of Muthoot Microfin Limited IPO.
The minimum lot size is 51 shares and the investment required is ₹14,127.
The price band of Muthoot Microfin Limited IPO is ₹271 to ₹291.
ICICI Securities Limited, Axis Capital Limited, Jm Financial Limited and SBI Capital Markets Limited are the book runners for Muthoot Microfin Limited IPO.
KFin Technologies Limited is the registrar for this IPO.
You may read more about Muthoot Microfin Limited and its IPO from the company’s red herring prospectus (RHP) here:
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