IPO Watch: Muthoot Microfin raises Rs 285 crore via pre-IPO placement to 26 investors

Muthoot Microfin has raised Rs 285 crore by promoting half stake to anchor buyers within the pre-IPO placement.

The corporate has allotted 97,93,812 shares to 26 anchor buyers. These embrace overseas portfolio buyers like Morgan Stanley, Societe Generale, Copthall Mauritius Funding.

Amongst home institutional buyers, a string of insurance coverage firms, together with ICICI Prudential Life Insurance coverage, HDFC Life Insurance coverage, Bajaj Allianz Life Insurance coverage, Kotak Mahindra Life Insurance coverage, and SBI Basic Life Insurance coverage have been allotted shares within the pre-IPO placement.

The preliminary public providing of Muthoot Microfin will open for subscription on December 18. The difficulty closes on December 20. The corporate’s shares are anticipated to get listed on each the exchanges.

The IPO includes a contemporary challenge of Rs 760 crore and an offer-for-sale (OFS) of Rs 200 crore.

Underneath the OFS, promoters Thomas John Muthoot, George Muthoot, Preethi John Muthoot, Remmy Thomas and investor Better Pacific Capital will offload shares.

The worth band of this public challenge is mounted at Rs 277-291. Buyers can bid for 51 shares in 1 lot and in multiples thereafter.Muthoot Microfin is the fourth largest microfinance firm in India by way of gross mortgage portfolio. It’s the third largest in south India, and the most important in Kerala by way of market share, and a key participant in Tamil Nadu with an virtually 16% share.

The microfinance agency goals to reinforce its capital base by way of the proceeds from the preliminary public providing. As per the RBI laws, microfinance establishments are required to take care of a minimal capital adequacy of 15% consisting of tier-I capital and tier-II capital.

About 50% of the supply is reserved for certified institutional consumers, 35% for retail buyers and the remainder 15% for non-institutional buyers.

Based on market analysts, Muthoot Microfin is buying and selling at a premium of round Rs 88 within the unlisted market or gray market.

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