Muthoot Microfin IPO announces price band at ₹277-291 per share: GMP, issue details, more

Muthoot IPO price band: The Muthoot Microfin IPO price band has been fixed in the range of ₹277 to ₹291 per equity share of the face value of ₹10. The Muthoot Microfin IPO date of subscription is scheduled for Monday, December 18, and will close on Wednesday, December 20. The allocation to anchor investors for the Muthoot IPO is scheduled to take place on Friday, December 15.

The floor price is 27.70 times the face value of the equity shares, and the cap price is 29.10 times the face value of the equity shares. The price-to-earnings ratio based on diluted EPS for the financial year 2023 for the company at the higher end of the price band is as high as 24.96 times and at the lower end of the price band is 23.76 times . The Muthoot IPO lot size is 51 equity shares and in multiples of 51 equity shares thereafter.

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Muthoot Microfin Limited IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. A discount of ₹14 per equity share is being offered to the eligible employees bidding in the employee reservation portion.

Tentatively, Muthoot Microfin IPO basis of allotment of shares will be finalised on Thursday, December 21 and the company will initiate refunds on Friday, December 22, while the shares will be credited to the demat account of allottees on the same day following refund. Muthoot IPO share price is likely to be listed on BSE and NSE on Tuesday, December 26. Given that T+3 listing is mandatory as of December 1, 2023, Muthoot Microfin Limited IPO will list on primary markets this month under this norm.

Muthoot Microfin IPO details

Muthoot Microfin Limited IPO comprises a fresh issue of shares of up to ₹760 crore and an offer for sale (OFS) of equity shares with face value of ₹10 each by a promoter and others aggregating up to ₹200 crore, as per red herring prospectus (RHP). Muthoot Microfin Limited IPO size is ₹960 crore.

The promoter selling shareholders are Thomas John Muthoot (up to ₹16.36 crore), Thomas Muthoot (up to ₹16.38 crore), Thomas George Muthoot (up to ₹16.36 crore), Preethi John Muthoot (up to ₹33.74 crore), Remmy Thomas (up to ₹33.3 crore), Nina George (up to ₹33.76 crore), and investor selling shareholders is Greater Pacific Capital WIV Ltd (up to ₹50 crore), as per RHP. 

The company intends to increase its capital base in order to meet future capital requirements by using the net proceeds from the new issue.

“The main objects and objects incidental and ancillary to the main objects set out in the Memorandum of Association enable us: (i) to undertake our existing business activities; and (ii) to undertake the activities proposed to be funded from the Net Proceeds. Further, our Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including to enhance our brand image among our existing and potential customers and creation of a public market for the Equity Shares in India,” the company said in its RHP.

The company's listed peers are Equitas Small Finance Bank Limited (with a P/E of 20.29), Ujjivan Small Finance Bank Limited (with a P/E of 9.33), CreditAccess Grameen Limited (with a P/E of 32.47), Spandana Sphoorty Financial Limited (with a P/E of 551.18), Bandhan Bank Limited (with a P/E of 15.59), Suryoday Small Finance Bank Limited (with a P/E of 21.73), and Fusion Micro Finance Limited (with a P/E of 13.46), as per RHP.

The book running lead managers of the Muthoot Microfin IPO are ICICI Securities Limited, Axis Capital Limited, JM Financial Limited, and SBI Capital Markets Limited. The registrar of the issue is Kfin Technologies Limited.

Muthoot Microfin IPO GMP today

Muthoot Microfin IPO GMP today or grey market premium is +130. This indicates Muthoot Microfin IPO share price were trading at a premium of ₹130 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Muthoot Microfin share price is ₹421 apiece, which is 44.67% higher than the IPO price of ₹291.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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