Muthoot Microfin Ltd, a subsidiary of Muthoot Pappachan Group has filed documents for an Initial Public Offering (IPO) with market regulators SEBI in order to raise Rs 1,350 crore through the secondary market.
The company has re-submitted the draught documents to raise funds through IPO, it earlier filed the documents in 2018. Muthoot Microfin which specializes in providing micro-loans to women customers plans to raise up to Rs 950 crore through its IPO which will entirely consist of fresh shares worth Rs 950 crore and an offer for sale (OFS) of existing shares worth Rs 400 crore.
The company has filed a draft red herring prospectus (DRHP) with the market regulator which states that the company may also conduct a pre-IPO placement to raise Rs 190 crores and if this placement is successfully executed the size of fresh issue will be reduced. Company has states that the funds generated will be utilized to strengthen company’s capital base to meet future capital requirements. There are a number of entities that intend to sell shares through offer for sale (OFS) route worth Rs 400 crore.
Greater Pacific Capital WIV Ltd is planning to offload their equities in the company worth Rs 100 crore whereas Thomas John Muthoot, Thomas Muthoot and Thomas George Muthoot aims to sell their shares worth Rs 70 crore each. Additionally, Preethi John Muthoot, Remmy Thomas and Nina George will be offloading their part of equities worth Rs 30 crore each.
Muthoot Microfin has reported a gross loan portfolio of Rs 9,208.29 crore as on March 31. ICICI securities, Axis Capital, JM Financial and SBI Capital have been appointed as book running lead managers for the offering as per the DRHP filed by the company.
