Muthoot Microfin Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹291
Per ShareLot Size
51 Shares
Minimum Investment
₹14,841
Issue Size
₹960 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Muthoot Microfin Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
69.08%
Promoter Holding (Post-Issue)
55.47%
Issue Type
Book Building
ISIN
INE046W01019
About the Company
Muthoot Microfin Limited is a microfinance institution providing micro-loans to women customers (primarily for income generation purposes) with a focus on rural regions of India. Its loan products comprise, among others, (i) group loans for livelihood solutions such as income generating loans, Pragathi loans (which are interim loans made to existing customers for working capital and income generating activities) and individual loans; (ii) life betterment solutions including mobile phones loans; (iii) health and hygiene loans such as sanitation improvement loans; and (iv) secured loans in the form of gold loans and our Muthoot Small & Growing Business loans
Industry Overview
The microfinance industry's gross loan portfolio increased at a compounded annual growth rate of 21% since the financial year 2018 to reach approximately Rs. 3.3 trillion in the third quarter of the financial year 2023. The growth rate for non-banking financial companies - microfinance institutions, is the fastest as compared to other player groups. Going forward, the microfinance industry will continue to see strong growth due to the Government's continued focus on strengthening the rural financial ecosystem, robust credit demand, and higher-ticket loans disbursed by microfinance lenders
Company History
Muthoot Microfin Limited was incorporated as `Panchratna Stock and Investment Consultancy Services Private Limited' on April 6, 1992 at Mumbai, Maharashtra, India as a private limited company under the Companies Act, 1956. Thereafter, the Company was converted into a public limited company pursuant to a special resolution passed by its Shareholders on April 30, 1994 and consequently, the name of the Company was changed to `Panchratna Stock and Investment Consultancy Services Limited'. A fresh certificate of change of name, consequent upon conversion to a public limited company was issued by the Registrar of Companies, Maharashtra at Mumbai ("RoC") on June 9, 1994. Thereafter, the name of the Company was changed to `Panchratna Securities Limited', in order to align with the object clause and activity being carried on by the Company, pursuant to a resolution passed by the Shareholders on June 11, 1994. A fresh certificate of incorporation, consequent to the change of name was granted to the Company by the RoC on June 22, 1994. The Reserve Bank of India ("RBI") granted a certificate of registration dated March 18, 1998 bearing no. 13.00365 to the Company, under its erstwhile name `Panchratna Securities Limited' for registration as an NBFC under Section 45-IA of the Reserve Bank of India Act, 1934. Subsequently, the name of the Company was changed to `Muthoot Microfin Limited', in order to reflect the group's identity of the shareholders i.e., the Muthoot Pappachan Group and the operations of the Company, pursuant to a resolution passed by the Shareholders on October 29, 2012. A fresh certificate of incorporation, consequent to the change of name was granted to the Company by the RoC on November 6, 2012. Pursuant to a change in the objects clause of the Company, which was approved by way of special resolution dated January 21, 2013, the Company was granted a certificate of registration of the special resolution confirming alteration of object clause dated February 12, 2013. Subsequently, the RBI granted a revised certificate of registration dated March 18, 1998, reflecting the change of the Company's name to Muthoot Microfin Limited, with effect from March 25, 2015. The RBI has granted NBFC-Microfinance Institution ("NBFC-MFI") status to the Company with effect from March 25, 2015, pursuant to an endorsement on its certificate of registration dated March 18, 1998.
Products & Services
- Muthoot Microfin Limited is a microfinance institution providing micro-loans to women customers.
Growth Strategy
- Expand its geographical footprint and sourcing platform across India.
- Continue to Enhance Information Technology with a Focus on Customer Service, Operational Efficiency and Cost Optimization.
- Leverage its existing branch network to expand its customer base and gross loan portfolio.
- Diversifying its Sources of Funds.
Customer Base
Micro-loans to women customers (primarily for income generation purposes) with a focus on rural regions of India.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 33,007,054* equity shares of face value of Rs. 10 each ("Equity Shares") of Muthoot Microfin Limited ("Company") for cash at a price of Rs. 291^ per equity share (including a share premium of Rs. 281 per equity share) ("Offer Price") aggregating to Rs. 960.00 crores* comprising a fresh issue of 26,134,205* equity shares of face value of Rs. 10 each aggregating to Rs. 760.00 crores* by the company ("Fresh Issue") and an offer for sale of 6,872,849* equity shares of face value of Rs. 10 each aggregating to Rs. 200.00 crores* ("Offered Shares") by the selling shareholders, consisting 562,302* equity shares of face value of Rs. 10 each aggregating to Rs. 16.36 crores* by Thomas John Muthoot, 563,024* equity shares of face value of Rs. 10 each aggregating to Rs. 16.38 crores* by Thomas Muthoot, 562,233* equity shares of face value of Rs. 10 each aggregating to Rs. 16.36 crores* by Thomas George Muthoot, 1,159,415* equity shares of face value of Rs. 10 each aggregating to Rs. 33.74 crores* by Preethi John Muthoot, 1,147,319* equity shares of face value of Rs. 10 each aggregating to Rs. 33.39 crores* by Remmy Thomas and 1,160,343* equity shares of face value of Rs. 10 each aggregating to Rs. 33.77 crores* by Nina George (collectively, the "Promoter Selling Shareholders") and 1,718,213* equity shares of face value of Rs. 10 each aggregating to Rs. 50.00 crores* by Greater Pacific Capital wiv Ltd (the "Investor Selling Shareholder" and collectively with the promoter selling shareholders referred to as the "Selling Shareholders") and such equity shares offered by the selling shareholders ("Offer for Sale", and together with the fresh issue, the "Offer") The offer included a reservation of 361,010* equity shares of face value of Rs. 10 each, aggregating to Rs. 10.00^^ crores (constituting 0.21% of the post-offer paid-up equity share capital), for subscription by eligible employees ("Employee Reservation Portion"). The company, acting through its ipo committee in consultation with the brlms, in accordance with the sebi icdr regulations, has offered a discount of 4.81% of the offer price (equivalent of Rs. 14 per equity share) to eligible employees bidding in the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constitute 19.36% and 19.15%, respectively, of the post-offer paid-up equity share capital of the company. The face value of equity shares is Rs. 10 each. The offer price is 29.10 times the face value of the equity shares. ^A discount of Rs. 14 per equity share was offered to eligible employees bidding in the employee reservation portion *Subject to finalisation of the basis of allotment ^^After employee discount
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Market leadership with a pan-India presence.
- Rural focused operations, with a commitment towards health and social welfare of our customers.
- Brand recall and synergies with the Muthoot Pappachan Group.
- Robust risk management framework leading to healthy portfolio quality.
- Streamlined operating model with effective use of technology.
- 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. As a result, the company may experience increased levels of non-performing assets and related provisions and write-offs that may adversely affect its business, financial condition and results of operations.
- The company's business is vulnerable to interest rate risk, and volatility in interest rates could have an adverse effect on its net interest income and net interest margin, thereby affecting the company results of operations.
- An increase in the level of its non-performing assets or provisions may adversely affect the company financial condition and results of operations.
- As a non-banking financial company - microfinance institution, the company is subject to periodic inspections by the Reserve Bank of India. Non-compliance with observations made by the Reserve Bank of India during these inspections could expose it to penalties and restrictions.
- The company is subject to certain conditions under its financing arrangements, which could restrict the company ability to conduct its business and operations in the manner the company desire.