Muthoot Pappachan Group plans IPO for MFI arm

Mumbai: Kerala-based Muthoot Microfin, a subsidiary of the gold loan player Muthoot Fincorp, is planning an IPO in 2019.

The company said the IPO will to support expansion of our microfinance business we are preparing ourselves for an IPO. As of today we are the fourth largest MFI.

As part of the IPO, the MFI is also planning to divest some equity to a PE player and plans to raise USD50 million, the company said, adding last December it had raised $20 million from the Chicago-based PE firm Creation Investment.

So far in FY18, the MFI has already raised ₹ ,058 crore of funding, which includes ₹ 75 crore of listed NCDs, ₹ 398 crore of term loans from banks, and ₹ 585 crore of direct assignment of priority sector portfolio with various banks