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Home > IPO > Muthoot Microfin Ltd

₹ 14841 / 51 shares

IPO Details

RHP/DRHP

Issue Date

18 Dec - 20 Dec'23

Investment/lot

₹ 14841

Price Range

277 - 291

Lot Size

51

IPO Size

₹ 960.51 Cr

IPO Listing Details

Listing On

26 Dec'23

Issue Price

291

Listed Price

₹ 275.3

Retail Gain/Listing Gain

▼-5.40%

Start date

18/12/2023

End date

20/12/2023

Allotment of bids

Refund Initiation

Listing on exchange

26/12/2023

IPO Timeline

Watch and Learn
All you need to know about Muthoot Microfin IPO
In our exclusive chat with Mr. Sadaf Sayeed, CEO, Muthoot Microfin Limited, we dig deeper into the company's business model, growth prospects, and rationale behind the IPO.
Exclusive Conversation About Muthoot Microfin IPO | Kotak Chatroom | Management Discussion

Exclusive Conversation About Muthoot Microfin IPO | Kotak Chatroom | Management Discussion

Kotak Securities

•

11m 38s

Muthoot Microfin Limited is a microfinance institution providing micro-loans to female customers (primarily for income generation purposes) focusing on rural regions of India.

The company is the 5th largest NBFC-MFI in India in terms of gross loan portfolio as of March 31, 2023 (Source: CRISIL Report). They are also the third largest among NBFC-MFIs in South India in terms of gross loan portfolio, the largest in Kerala in terms of MFI market share, and a key player in Tamil Nadu with an almost 16% market share, as of March 31, 2023 (Source: CRISIL Report).

Let's take a look at the competitive strengths and risk factors for Muthoot Microfin Limited:

Competitive Strengths

Market leadership with a pan-India presence

The company has a well-diversified portfolio across 339 districts in 18 states and union territories in India, as of September 30, 2023, and their gross loan portfolio in the top three states, namely Kerala, Karnataka and Tamil Nadu, together accounted for 51.36% of their total gross loan portfolio. Over the past five years, the company has expanded operations in North, East and West India, which has allowed them to diversify their customer base and gross loan portfolio and increase revenue from operations.

Rural-focused operations, with a commitment towards the health and social welfare of customers

The company has a history of serving rural markets with high growth potential in the microfinance segment, and has maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and expansion into underpenetrated areas. Their connection with rural customers has largely been driven by continuously improving their understanding of the financial needs of the rural customer segment and commitment to consistent engagement with the communities they serve.

Robust risk management framework leading to healthy portfolio quality

Their robust risk management framework, customer selection methodologies, and regular end-use and payment monitoring have led to healthy portfolio quality indicators. These include high collection efficiency, stable PAR, and low rates of gross NPAs and net NPAs. The collection efficiency stood at 95.84% and 98.89% for the FY23 and the six months ending September 30, 2023. The company also held the fifth-lowest gross NPA ratio as of March 31, 2023, and by September 30, 2023, the company achieved the third-lowest net NPA ratio among the selected NBFC-MFIs, according to the CRISIL Report.

Risk Factors

  • The microfinance industry in India faces certain risks due to the category of customers that it services, which are not generally associated with other forms of lending.
  • The business is vulnerable to interest rate risk, and volatility in interest rates could adversely affect the net interest income and net interest margin.
  • The company is subject to certain conditions under its financing arrangements, which could restrict its ability to conduct business.

Key Strategies

  • Expand geographical footprint and sourcing platform across India.
  • Continue to enhance information technology with a focus on customer service, operational efficiency and cost optimisation.
  • Leverage the existing branch network to expand customer base and gross loan portfolio.

Muthoot Microfin Key Financials

Here are the key financials for Muthoot Microfin Limited:

Particulars (in Rs. million)

Particulars (in Rs. million)

WHAT ARE YOU LOOKING FOR?
Applying for an IPO for the first time?
Here's a video playlist to help you invest in Muthoot Microfin Limited IPO
How to apply for IPO through ASBA

How to apply for IPO through ASBA

Kotak Securities

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00m 59 s

How to apply for an IPO using UPI

How to apply for an IPO using UPI

Kotak Securities

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01m 19 s

title

How to apply for an IPO using UPI

Kotak Securities • 01m 19 s

Here are the steps to apply for Muthoot Microfin Ltd IPO:

Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.

Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.

Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.

Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.

Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.

Muthoot Microfin Ltd IPO FAQs

Muthoot Microfin Ltd will list on 2023-12-26.

960.51 is the issue size of Muthoot Microfin Ltd IPO.

The minimum lot size is 51 shares and the investment required is ₹14841.

The price band of Muthoot Microfin Ltd IPO is ₹277 to ₹291.

You can read more about Muthoot Microfin Ltd and its IPO from the company’s red herring prospectus (RHP) here.

The Muthoot Microfin Limited IPO has an issue size of Rs. 960 crores. The IPO opens for subscription on 18th December 2023 and closes on 20th December 2023.

Muthoot Microfin Limited IPO will be allotted on 21st December 2023.

Muthoot Microfin Limited will list on 26th December 2023.

960 Crore is the issue size of Muthoot Microfin Limited IPO.

The minimum lot size is 51 shares and the investment required is ₹14,127.

The price band of Muthoot Microfin Limited IPO is ₹271 to ₹291.

ICICI Securities Limited, Axis Capital Limited, Jm Financial Limited and SBI Capital Markets Limited are the book runners for Muthoot Microfin Limited IPO.

KFin Technologies Limited is the registrar for this IPO.

You may read more about Muthoot Microfin Limited and its IPO from the company’s red herring prospectus (RHP) here:

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