Muthoot Microfin Limited IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

Issue Details
Objects of the issue	·         To undertake existing business activities ·         To undertake the activities proposed from net proceeds ·         To gain the listing benefits
Issue Size	Total issue Size – Rs.960 Cr. Fresh Issue – Rs.760 Cr. Offer for Sale – Rs.200 Cr.
Face value	Rs.10
Issue Price	Rs.277 – Rs.291
Bid Lot	51 Shares
Listing at	BSE, NSE
Issue Opens	18th Dec, 2023 – 20th Dec, 2023
QIB	50% of Net Issue Offer
NIB	15% of Net Issue Offer
Retail	35% of Net Issue Offer

Muthoot Microfin Limited IPO Financial Analysis:

Trade AnyTime AnyWhere With Elite Empower Mobile App

 

Muthoot Microfin Limited IPO Revenue from Operations:

Muthoot Microfin Limited IPO Major Shareholders:

Muthoot Microfin Limited IPO Offer for Sale Details:

Particulars	Pre- Issue	Post Issue
Promoters Group	69.08%	54.46%
Others	30.92%	45.54%

Muthoot Microfin Limited IPO Strengths:

• Muthoot Microfin Limited serves rural markets with high growth potential in the microfinance segment, and have maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and expansion into underpenetrated areas.

• Muthoot Microfin Limited’s relationship with the Muthoot Pappachan Group provides it with brand recall and significant marketing and operational benefits.

• Muthoot Microfin Limited has implemented well-defined key risk management policies which primarily focus on addressing credit risk, operational risk and financial risk. Its robust risk management framework, customer selection methodologies and regular end use and payment monitoring have resulted in healthy portfolio quality indicators such as high collection efficiency, stable PAR and low rates of gross NPAs and net NPAs.

• Muthoot Microfin Limited has a streamlined operating model with effective use of technology which includes increasing digital penetration, reducing risks associated with cash transactions, improving risk management and underwriting processes, increasing operational efficiency, improving customer analytics and simplifying sourcing.

• Muthoot Microfin Limited has a well-diversified funding profile that underpins its liquiditymanagement system, credit rating and brand equity. The company received an upgraded credit rating of A+/Stable by CRISIL on October 19, 2022, which was reaffirmed on January 19, 2023. The company has historically secured, and seek to continue to secure, cost effective funding through a variety of sources, including public sector banks, private sector banks, foreign banks, other non-banking financial institutions, developmental financial institutions, public investors etc

• MML’s relationship with the Muthoot Pappachan Group provides it with brand recall and significant marketing and operational benefits.

• The co. serves 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.

• Its robust risk management framework, customer selection methodologies and regular end use and payment monitoring have resulted in healthy portfolio quality indicators such as high collection efficiency, stable PAR and low rates of gross NPAs and net NPAs.

Muthoot Microfin Limited IPO Key Highlights:

• Revenue of the co. has increased from Rs.684 Cr. in FY21 to Rs.1429 Cr. in FY23 with a strong CAGR of 27.8%; while its profits have grown from Rs.7 cr. in FY21 to Rs.164 cr. in FY23 with a huge CAGR of 185%.

• Co’s NIM is growing and stands at 11.60% in FY23 from 8.24% in FY21.

• Co’s Disbursements is growing rapidly; grown by 74.40% in FY23 to Rs.8105 cr. from Rs.4647 cr. in FY22.

• The CRAR of the co. in FY23 is at 21.87%; GNPA and NNPA have improved significantly over the years and stands at 2.97% and 0.60% in FY23.

Muthoot Microfin Limited IPO Risk Factors:

• Muthoot Microfin Limited’s customers generally have limited sources of income, savings and credit histories. As a result, the company may experience increased levels of non-performing assets and related provisions and write-offs that may adversely affect its business.

• Muthoot Microfin Limited depends on the recognition of the “Muthoot” brand, and failure to use, maintain and enhance awareness of the brand would adversely affect its ability to retain and expand its base of customers.

• There are several outstanding legal proceedings against Muthoot Microfin Limited, its directors, Promoters and Group Companies. An adverse outcome in any of these proceedings may adversely affect its reputation, business, financial condition, results of operations and cash flows.

• Muthoot Microfin Limited faces the threat of cyber-fraud and cyber-attacks, such as hacking, phishing and theft of sensitive internal data or customer information and also faces the threat of a system breakdown, network outage and system failure. These may damage its reputation and adversely affect its business.

• MML’s customers generally have limited sources of income, savings and credit histories. As a result, the co. may experience increased levels of NPAs and related provisions and write-offs that may adversely affect its business.

• There are several outstanding legal proceedings against Muthoot Microfin Limited, its directors, Promoters and Group Companies. An adverse outcome in any of these proceedings may adversely affect its reputation and business.

Muthoot Microfin Limited IPO Outlook:

MML is one of the leading micro finance company in the South India, mainly focused on rural areas and joint-liability group funding. Company’s AUM is rapidly growing in the past three years and stands at Rs.10,877 cr. as of September 30, 2023 which has grown by 46% YoY. Also it is adding new number of customers swiftly. The company works in the rapidly growing microfinance industry which is expected to continue expanding on the back of technological advancements and focus on the low penetrated rural areas. MML is offering the P/E of 30.27x on the upper price band which seems very reasonable compared to the industry average of 94.86x. Company has huge growth potential in the Indian microfinance market. Considering the strong growth in the financials and controlled asset quality, we recommend investors to consider applying in the offering.

Motisons Jewellers IPO FAQ