Muthoot Microfin IPO Subscription Day 2: The initial public offering (IPO) of the Kochi-based Muthoot Microfin Limited opened on , while the offering is scheduled to close on December 20. Through the public issue, the company aims to raise Rs 960 crore; with the net proceeds, Muthoot Microfin intends to increase its capital base in order to meet future capital requirements.
The Muthoot Microfin IPO is among seven public offerings that will open for subscription this week. The other IPOs opening this week are those of Motison Jewellers, Suraj Estate Developers, Happy Forgings, Credo Brands, RBZ Jewellers, and Azad Engineering. These are worth Rs 151 crore, Rs 400 crore, Rs 1008 crore, Rs 550 crore, Rs 100 crore, and Rs 740 crore, respectively.
Muthoot Microfin IPO subscription status
The Muthoot Microfin IPO was subscribed in full soon after the second day of bidding kicked off on December 19, with bids coming in for all 2.43 crore shares.
Retail investors bought 1.69 times the allotted quota of shares. The portion set aside for non-institutional investors was subscribed 67 percent, the employees’ portion was booked 1.54 times, while qualified institutional buyers bought 0.1 percent shares of the reserved portion.
Muthoot Microfin IPO price:
The microfinance company has fixed Muthoot Microfin IPO price band at Rs 277 to Rs 291 per equity share.
Muthoot Microfin IPO size:
The company aims to raise Rs 960 crore from this public issue out of which Rs 760 crore is aimed via fresh issue while Rs 200 croer is reserved for OFS (offer for sale).
Muthoot Microfin IPO lot size:
A bidder will be able to apply in lots and one lot of the IPO comprises 51 company shares.
Muthoot Microfin IPO allotment date:
In the wake of T+3 listing rule, most likely date for share allocation is 21st December 2023.
Muthoot Microfin IPO registrar:
Kfin Technologies Limited has been appointed as official registrar of the public offer.
Muthoot Microfin IPO listing:
The public issue is proposed for listing on BSE and NSE.
Muthoot Microfin IPO listing date:
The likely date for share listing is 26th December 2023.
What Should Investors Do?
Brokerages have weighed in on this IPO. Anand Rathi Research suggests a long-term outlook, citing the company’s market leadership and nationwide presence within the esteemed Muthoot Pappachan group.
Their evaluation indicates fair pricing, prompting a ‘subscribe for long term’ rating.
Swastika Investmart, on the other hand, advises a cautious approach despite recognizing Muthoot Microfin’s strong brand recognition and robust risk management.
They highlight industry risks, especially concerning clientele and exposure to interest rate fluctuations.
Arihant Capital Markets echoes positivity, emphasising the company’s improved asset quality and anticipated credit rating enhancement, foreseeing improved margins.
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