The IPO of Muthoot Microfin has opened on Monday, 18 December. The price band of the IPO with a total issue size of Rs 960 crore has been fixed at Rs 277-291 per share. Investors can bid in this IPO till December 20.
Of the total issue size, half is reserved for qualified institutional buyers, while 15% is reserved for HNIs and the remaining 35% is reserved for retail investors. Muthoot Finance has reserved shares worth Rs 10 crore for its employees, who will also get a discount of Rs 14/share in the final issue price.
Highlights related to the IPO
- Issue opened: 18 December
- Issue closed: 20 December
- Issue size: Rs 950 crore
- Fresh issue: Rs 760 crore
- OFS: Rs 200 crore
- Lot size: 51 shares, thereafter can be bought in multiples of 51
Minimum investment Rs 14,841
Retail investors will need at least Rs 14,841 to invest in 51 shares (minimum lot size). Retail investors can invest up to a maximum of Rs 2 lakh. Considering the lot size, the maximum investment can be Rs 1,92,933.
Out of the total issue size of Rs 960 crore, new shares worth Rs 760 crore will be issued, Offer for Sale (OFS) will be of Rs 200 crore. Although earlier the issue size of Rs 1350 crore was mentioned in DRHP, but the company has reduced it. Promoters Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preeti John Muthoot, Remi Thomas, Neena George will sell their shares worth Rs 30-70 crore in OFS.
What does the company do
Muthoot Microfin is a subsidiary company of Muthoot Pappachan Group. Muthoot Microfin offers micro-loans to women customers with a special emphasis on rural areas.
