Muthoot Microfin Limited IPO Company Details:
A microfinance company called Muthoot Microfin Limited focuses on rural areas of India and offers microloans to women clients. As of December 31, 2022, it was the third-biggest NBFC-MFI in South India and the fourth-largest NBFC overall in terms of gross loan portfolio, the largest in Kerala in terms of MFI market share, and a significant participant in Tamil Nadu with an over 16% market share. This business model helps in driving financial inclusion, as it serves customers who belong to low-income groups. The company has built its branch network with an emphasis on under-served rural markets with growth potential, in order to ensure ease of access to customers. The company’s branches are connected to its IT networks and are primarily located in commercial spaces which are easily accessible by the customers.
Muthoot Microfin Limited IPO Business Offerings:
Muthoot Microfin Limited’s loan products comprise:
Group loans for livelihood solutions such as income generating loans, Pragathi loans (which are interim loans made to existing customers for working capital and income generating activities) and individual loans.
Life betterment solutions including mobile phones loans, solar lighting product loans and household appliances product loans.
Health and hygiene loans such as sanitation improvement loans.
Secured loans in the form of gold loans and its Muthoot Small & Growing Business (“MSGB”) loans.
The company also offers ‘e-clinic’ services by collaborating with M-Swasth Solutions Private Limited, a technology driven digital healthcare service provider. It provides its customers and up to five of their family members with video consultation with doctors at a nominal enrolment cost.
Muthoot Microfin Limited is a subsidiary of the Muthoot Pappachan Group, a business conglomerate with operations in the automotive, hospitality, real estate, information technology infrastructure, precious metals, and alternative energy sectors and has been in the financial services industry for more than 50 years. For the Financial Year 2023, it is the second-largest entity within the Muthoot Pappachan Group in terms of AUM.
Muthoot Microfin Limited IPO Details:
|IPO Open Date||Not Available|
|IPO Close Date||Not Available|
|Listing Date||Not Available|
|Face Value||₹10 per share|
|Lot Size||Not Available|
(aggregating up to ₹1350 Cr)
|Offer For Sale||[●]shares
(aggregating up to ₹400 Cr)
(aggregating up to ₹950 Cr)
|Issue Type||Book Built Issue IPO|
|Listing At||BSE, NSE|
|QIB Shares Offered||Not more than 50% of the Offer|
|NII (HNI) Shares Offered||Not less than 15% of the Offer|
|Retail Shares Offered||Not less than 35% of the Offer|
|Promoters||Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, Nina George And Muthoot Fincorp Limited|
Muthoot Microfin Limited IPO Financial Analysis:
|Particulars||FY-23(in cr.)||FY-22(in cr.)||FY-21(in cr.)||CAGR|
|Revenue from Operations||1428.76||832.51||684.17||44.5%|
|Fees and commission expenses||27.54||17.85||9.74||68.2%|
|Impairment on financial instruments||223.32||111.15||132.22||30.0%|
|Profit / (loss) before tax||212.87||64.72||9.06||384.9%|
|Profit / (loss) After tax||163.89||47.40||7.05||382.0%|
|Profit / (loss) After tax margin%||11.47%||5.69%||1.03%|
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Check Muthoot Microfin Limited IPO Allotment Status
Muthoot Microfin Limited IPOallotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
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Muthoot Microfin Limited IPO Revenue from Operations:
|Segment||FY-23(in cr.)||%||FY-22(in cr.)||%||FY-21(in cr.)||%||CAGR|
|Fees and commission income||17.32||1.21%||6.15||0.74%||3.21||0.47%||132.3%|
|Net gain on fair value changes||111.53||7.81%||91.03||10.93%||40.92||5.98%||65.1%|
|Income on investments||8.33||0.58%||5.82||0.70%||16.99||2.48%||-30.0%|
|Sale of services||0.92||0.06%||0.86||0.10%||0.25||0.04%||91.6%|
Muthoot Microfin Limited IPO Major Shareholders:
|S.NO.||Name of the Shareholder||No. of Shares||% of pre-Offer shareholding|
|1.||Thomas John Muthoot||51,456,049||26.56|
|2.||Thomas George Muthoot||51,456,021||26.56|
|4.||Preethi John Muthoot||12,913,704||6.67|
|7.||Muthoot Kuries (India) Private Limited||119,050||0.06|
|8.||Muthoot Exim Private Ltimited||476,200||0.25|
Muthoot Microfin Limited IPO Offer for Sale Details:
|S. No.||Name of the Selling Shareholder||Aggregate amount of Offer
for Sale (₹ crore)
|Promoter Selling Shareholders|
|1.||Thomas John Muthoot||Up to 700.00|
|2.||Thomas Muthoot||Up to 700.00|
|3.||Thomas George Muthoot||Up to 700.00|
|4.||Preethi John Muthoot||Up to 300.00|
|5.||Remmy Thomas||Up to 300.00|
|6.||Nina George||Up to 300.00|
|Investor Selling Shareholder|
|1.||GPC||Up to 1000.00|
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
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.
Muthoot Microfin Limited IPO Prospectus:
- Muthoot Microfin Limited IPO DRHP- https://www.sebi.gov.in/filings/public-issues/jul-2023/muthoot-microfin-limited-drhp_73421.html
- Muthoot Microfin Limited IPO RHP-
Muthoot Microfin Limited IPO Registrar to the offer:
KFin Technologies Limited
Tel: +91 40 6716 2222
Investor Grievance ID: email@example.com
Contact Person: M.Murali Krishna
SEBI Registration Number: INR000000221