Muthoot Microfin refiles draft papers with SEBI to raise Rs 1,350 crore via IPO

Muthoot Fincorp

Muthoot Microfin Ltd, the microfinance arm of the Muthoot Pappachan Group, has refiled its draft papers with the Securities and Exchange Board of India to raise Rs 1,350 crore via initial public offerings. The firm had previously filed draft papers back in 2018.

The IPO consists of a fresh issue of upto Rs 950 crore and an offer for sale (OFS) of upto Rs 400 crore by its promoters and shareholders.

The OFS comprises up to Rs 70 crores each by Thomas John Muthoot, Thomas Muthoot and Thomas George Muthoot, up to Rs 30 crores each by Preethi John Muthoot and Remmy Thomas and Nina George and up to Rs 100 crores by Greater Pacific Capital WIV Ltd.

As of March, Muthoot Fincorp holds a 72.36 percent stake in Muthoot Microfin. Creation Investments India has 11.13 percent sake while Greater Pacific Capital WIV Ltd has a 25.15 percent stake in the firm.

The proceeds from the fresh issue will be used to augment the capital base. As of March 2023, the lender’s CRAR was 21.87 percent of which the Tier I Capital base was 21.87 percent. As per RBI guidelines, it has to maintain CRAR 15 percent consisting of tier I and tier II capital.

ICICI Securities, Axis Capital, JM Financial and SBI Capital Marketsare the Book Running Lead Managers to the issue.

Muthoot Microfin is promoted by Muthoot Fincorp, which holds the position of the fourth largest Non-Banking Financial Company-Microfinance Institution (NBFC-MFI) in India based on its gross loan portfolio as of December 2022. It also holds the third largest position among NBFC-MFIs in South India, specifically. Additionally, it proudly claims the title of being the largest MFI in Kerala in terms of market share. Furthermore, Muthoot Microfin plays a significant role in Tamil Nadu and boasts an impressive market share of almost 16 percent as of December 2022.

As of March 2023, its gross loan portfolio amounted to Rs 9,208.30 crore. It has 2.77 million active customers, who are serviced by 10,227 employees across 1,172 branches in 321 districts in 18 states and union territories in India. It has set up 358 e-clinics across 358 branches, representing 30.55 percent of our total branches. As of March 2023, 41.60 percent of its customers have enrolled in e-clinics, and it facilitated 198,826 medical consultations and 78,801 teleconsultations.

For FY23, it earned revenue of Rs 1,428.76 crore, up 71.6 percent from Rs 832.51 crore a year ago and its net income rose to Rs 163.89 crore from Rs 47.40 crore last year. For the fiscal, overall asset quality has improved, with gross NPAs halving to 2.97 percent from 6.26 percent and net NPAs falling to 0.6 percent from 1.55 percent last year.