Muthoot Microfin lists at Rs 275, down over 5% from IPO price

The MFI recorded a 246 percent on-year growth in net profit at Rs 163.9 crore for the year ended March 2023 and revenue during the same period increased by 71.6 percent to Rs 1,428.8 crore.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Shares of Muthoot Microfin made a disappointing debut on bourses on December 26, listing at a 5.5 percent discount to issue price of Rs 291. The stock started trading at Rs 275.30.

The company's IPO was subscribed 11.52 times, with qualified institutional buyers (QIBs) leading from the front as they bid 17.47 times their allotted quota. Retail investors bought 7.61 times, while high net-worth individuals (HNIs) bid 13.2 times the reserved portion.

The public issue of Muthoot Pappachan Group-backed Muthoot Microfin had opened for subscription on December 18.

Follow our live blog for all the market action

The NBFC provides micro-loans to women customers with a focus on rural regions of India and is the fifth largest NBFC-MFI (micro-finance institution) in terms of the gross loan portfolio as of March 31, 2023, and the third largest in southern India.

The MFI recorded a 246 percent on-year growth in net profit at Rs 163.9 crore for the year ended March 2023 and revenue during the same period increased by 71.6 percent to Rs 1,428.8 crore. The total capital ratio (CRAR) stood at 20.46 percent as of September 30, 2023.

Also Read: Strong debut | Motisons Jewellers lists at 98% premium to IPO price

According to RHP, its customers generally have limited sources of income, savings and credit histories. The majority of customers do not have any credit history supported by tax returns, proper proof of income, bank or credit card statements, statements of previous loan exposures or other related documents. Hence, it becomes difficult for the NBFC to consistently carry out credit risk analyses on customers.

At the upper end of its price band, the company's price-to-earnings (P/E) ratio sat at 30.3x, which is cheaper than its listed peers like CreditAccess Grameen (32.4x) and Spandana Sphoorty Financial (551.2x) but more than Equitas Small Finance (20.2x), Ujjivan Small Finance (9.3x), Bandhan (15.6x), Suryoday Small Finance Bank (21.7x) and Fusion Micro Finance (13.5x).