Muthoot Finance's Arm Belstar Microfinance Files For Rs 1,300 Crore IPO With SEBI

Belstar Microfinance Limited, Muthoot Finance's microfinance arm, has filed preliminary papers with the Securities and Exchange Board of India to raise Rs 1,300 crore through an initial public offering, according to an exchange filing. The IPO is a combination of fresh issue of equity shares worth Rs 1,000 crore and an offer-for-sale of Rs 300 crore by investor shareholders, according to the draft red herring prospectus.

Danish asset management firm MAJ Invest is set to divest shares worth Rs 175 crore as part of the OFS program. Following suit, Arum Holdings Ltd will offer shares worth Rs 97 crore, while Augusta Investments Zero Pte Ltd plans to sell shares valued at Rs 28 crore.

MAJ Invest had first invested in Belstar Microfinance in 2018 and again in 2022.

At present, Muthoot Finance, which is one the promoters, holds a little over 66% stake in Belstar Microfinance.

Proceeds from the fresh issue worth Rs 760 crore will be used to meet future capital requirements towards onward lending and the remaining amount will be used for general corporate purposes.

ICICI Securities, Axis Capital, HDFC Bank and SBI Capital Markets have been appointed as book running lead managers to manage the company's public issue.

With inputs from PTI