Muthoot Pappachan Group plans IPO for MFI arm

Kerala-based Muthoot Microfin, a subsidiary of the gold loan player Muthoot Fincorp, is planning an IPO in 2019.

The company said the IPO will to support expansion of our microfinance business we are preparing ourselves for an IPO. As of Tuesday the company is the fourth largest MFI.

As part of the IPO, the MFI is also planning to divest some equity to a PE player and plans to raise USD50 million, the company said, adding last December it had raised USD20 million from the Chicago-based PE firm Creation Investment.

So far in FY18, the MFI has already raised Rs 1,058 crore of funding, which includes Rs 75 crore of listed NCDs, Rs 398 crore of term loans from banks, and Rs 585 crore of direct assignment of priority sector portfolio with various banks.