Muthoot Microfin files DRHP for ₹1,350 crore IPO, plans to strengthen capital base

Muthoot Microfin has filed documents for an IPO to markets regulator Sebi in order to raise up to ₹1,350 crore through an secondary market. The Muthoot Pappachan Group's microfinance subsidiary, Muthoot Microfin Ltd., has re-submitted its draft papers to the Securities and Exchange Board of India in order to raise ₹1,350 crore through IPOs. In 2018, the company has already submitted draft documents.

The company that provides micro loans to women customers plans to raise up to ₹950 crores through an initial public offering (IPO). The IPO will consist of a fresh issue of shares worth ₹950 crores and an offer for sale (OFS) of existing shares worth ₹400 crores.

The company has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP states that the company may also conduct a pre-IPO placement to raise ₹190 crores. If this placement is undertaken, the size of the fresh issue will be reduced.

The proceeds generated from the new share offering will be utilized to strengthen the company's capital base in order to meet future capital needs. A number of entities intend to sell shares worth ₹400 crore through the Offer for Sale (OFS) route. Greater Pacific Capital WIV Ltd plans to offload equities valued at up to ₹100 crore, while Thomas John Muthoot, Thomas Muthoot, and Thomas George Muthoot aim to sell shares totaling up to ₹70 crore each.

Additionally, Preethi John Muthoot, Remmy Thomas, and Nina George are each planning to sell shares valued up to ₹30 crore, as stated in the Draft Red Herring Prospectus (DRHP). The company, which is a part of the Muthoot Pappachan Group, reported a gross loan portfolio of ₹9,208.29 crore as of March 31. ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets have been appointed as the Book Running Lead Managers for the offering.