Muthoot Microfin Limited is launching its IPO. The opens for subscription on 18th December and will close on 20th December, 2023.
What does Muthoot Microfin Limited do?
Muthoot Microfin Limited is a microfinance institution, ranking fourth among NBFC-MFIs in India and third in South India by loan portfolio, primarily serving women in rural areas for income generation. With a gross loan portfolio of ₹92,082.96 million and 2.77 million active customers, it operates through 1,172 branches across 18 states. As part of the Muthoot Pappachan Group, it leverages brand strength, catering to rural households with diverse lending products, predominantly focused on income-generating loans for women in lower-income groups.
The institution’s lending strategy emphasizes technology integration, employing credit scoring tools for risk assessment and digital collection methods like the “Mahila Mitra” app. Collaborating with healthcare providers, it has set up 358 e-clinics, offering digital healthcare services to 41.60% of its customers. Additionally, it provides natural calamity insurance to protect clients’ assets amid climate-related risks. Backed by a proficient board and senior management, the institution has garnered accolades for its socially integrated business approach, receiving awards like the ‘Golden Peacock Award for Business Excellence’.
What is the issue size of Muthoot Microfin Limited IPO?
The entire public offer of the company is a Fresh Issue of Equity Shares aggregating up to 950 crores and an Offer for Sale of Equity Shares aggregating up to 400 crores.
Financial information and other valuation metrics
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
|---|---|---|---|
| Total Assets | 8,529.19 | 5,591.45 | 4,183.84 |
| Total revenue | 1,446.34 | 842.94 | 696.28 |
| Revenue from operations | 1,428.76 | 832.50 | 684.16 |
| Net Cash inflow / (outflow) | 2,566.54 | 1,344.13 | 79.69 |
| Profit after taxes | 163.88 | 47.39 | 7.05 |
| EBITDA | 788.48 | 425.66 | 327.21 |
Risk factors to consider:
- The microfinance industry in India faces heightened risks due to its customer base, potentially leading to increased non-performing assets that can harm business operations and financial stability.
- Fluctuations in interest rates pose a significant threat to the business, affecting net interest income and margins, thereby impacting overall operational results.
- The company is susceptible to cyber-fraud, encompassing hacking, phishing, and data theft, alongside risks of system breakdowns and network failures.
- As a non-banking financial institution, regulatory inspections by the Reserve Bank of India carry the risk of penalties and limitations if compliance is not met.
- Legal actions against the Company, Directors, Promoters, and Group Companies pose a substantial threat, potentially harming the reputation of the business, financial health, operational outcomes, and cash flow if unfavorable judgments are reached.
Schedule of Muthoot Microfin Limited IPO
| Issue Period | 18th December to 20th December 2023 |
|---|---|
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | December 21, 2023 |
| Initiation of Refunds | December 22, 2023 |
| Credit of Shares | December 22, 2023 |
| Date of Listing | December 26, 2023 |
| Mandate end date | January 05, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | January 20, 2024 |
| Anchor Investors Lock-In End Date (Remaining investment) | March 20, 2024 |
How to apply to the Muthoot Microfin Limited IPO?
You can apply for the Muthoot Microfin Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for Muthoot Microfin Limited IPO?
You can check the allotment status for the Muthoot Microfin Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.