Muthoot Microfin Shares End At 8.52% Discount Over IPO Price
The Rs 960-crore IPO of the microlender was subscribed 11.52 times.
Shares of Muthoot Microfin Ltd. listed on the National Stock Exchange on Tuesday at Rs 275.30 apiece, a discount of 5.4% over its IPO price of Rs 291 apiece.
On the BSE, the stock debuted at Rs 291, a 4.47% discount. The shares ended at Rs 266.20 apiece, a discount of 8.52% to its IPO price, on the BSE.
The Rs 960-crore initial public offering was subscribed 11.52 times on its third and final day. The bids were led by institutional investors (17.47 times), followed by non-institutional investors (13.20 times), retail investors (7.61 times) and employees (4.95 times).
Through the fundraise, Muthoot intends to increase its capital base to meet future capital requirements.
"Muthoot Microfin was started 13 years ago, to create an institution which creates impact at the bottom of the pyramid," said Sadaf Sayeed, chief executive officer of Muthoot Microfin.
"I think the growth is immense, the potential is immense. As we all know that there are around 17 crore rural household which are potentially microfinance customers. Today the industry takes us to 7.5 crore households, so that much more potential," he said.
It is the country's fifth-largest microfinance company in terms of gross loan portfolio, with the largest presence in Kerala and Tamil Nadu accounting for an almost 16% market share as of March 31, 2023.
The microfinance institution provides micro-loans to women customers, primarily for income-generation purposes, with a focus on rural regions of India.
It is part of the Muthoot Pappachan Group, a business conglomerate with presence across financial services, automotive, hospitality, real estate, information technology infrastructure, precious metals and alternate energy sectors.
