Muthoot Microfin IPO Process and Listing

The Muthoot Microfin IPO process is a straightforward one. The IPO was open for subscription from May 16, 2023, to May 18, 2023.

To apply for the IPO, interested investors had to submit their bids through the UPI payment method. The IPO was priced at ₹65 per share.

The minimum lot size for the IPO was 40 shares, and the maximum bid value was ₹1,60,000. This means that the minimum investment required was ₹2,600.

The Muthoot Microfin IPO was a highly subscribed issue, with the company raising ₹960 crores.

The IPO was subscribed 11.52 times on the final day, with over 28.09 crore share bids against the issue size of 2,43,87,447 shares.

Here are the key details of the Muthoot Microfin IPO:

The Muthoot Microfin IPO was listed at ₹291 per share on BSE and NSE.

The IPO timeline for Muthoot Microfin is quite straightforward. The bid start date is December 18, 2023, and the bid end date is December 20, 2023.

The allotment process will be finalized on December 21, 2023. This is when the Basis of Allotment will be determined.

The allotted shares will be credited to your demat account by December 22, 2023. This is the day when the refund initiation and demat allocation will take place.

The listing date for Muthoot Microfin is December 26, 2023. This is when the IPO will be listed on the stock exchange.

Here's a summary of the IPO timeline in a table:

To apply for Muthoot Microfin Ltd IPO, you need to log in to your demat account to complete the bidding process.

You'll then need to approve the payment mandate on your UPI app.

This is a crucial step, as it ensures that the funds required for the IPO are deducted from your account once the bidding is successful.

To apply for an IPO, you need to log in to your demat account to complete the bidding process.

The cut-off time for UPI mandate confirmation is 5:00 PM on December 20, 2023.

You can check the IPO details, such as bidding dates, price range, and IPO size, to plan your investment.

Here are the IPO details for Muthoot Microfin Ltd:

You can approve the UPI mandate request for the IPO by logging in to your UPI app and confirming the payment mandate.

Remember to check the cut-off time for UPI mandate confirmation to avoid any last-minute issues.

The IPO process can be complex, but let's break it down. Muthoot Microfin Ltd's IPO is a Mainboard IPO of 3,29,89,692 equity shares of a face value of ₹10 aggregating up to ₹960 Crores.

The issue is priced at ₹291 to ₹291 per share, which means you'll need to pay this amount for each share you buy. The minimum order quantity is 51 Shares.

Retail investors can subscribe to a minimum of one lot, 51 shares, and the minimum amount required is ₹14,841. This is the minimum amount you'll need to invest in Muthoot Microfin Ltd's IPO.

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The IPO opens on December 18, 2023, and closes on December 20, 2023, so make sure to mark your calendars. KFin Techologies Ltd is the registrar for the IPO, which means they'll be handling the process.

The shares are proposed to be listed on BSE, NSE, which are India's major stock exchanges.

The IPO pricing for Muthoot Microfin Ltd is a fixed ₹291 per share, with no variation in the price range. This is a clear indication that the company is looking to raise funds at a specific price point.

The face value of each share is ₹10, which is a standard practice in the IPO market. This means that investors will be buying shares at a premium of ₹281 per share compared to the face value.

The Muthoot Microfin Ltd IPO will list on both BSE and NSE on December 26, 2023, as per the listing details provided.

A unique perspective: Muthoot Microfin Ipo Subscription Status

The financials of an IPO are a crucial aspect to consider before investing.

Muthoot Microfin Ltd's financials show a clear picture of the company's performance.

Total Assets of the company are a significant indicator of its financial health.

A total of ₹ million is what Muthoot Microfin Ltd's Total Assets stand at.

Total Liabilities of the company are a reflection of its debt and financial obligations.

Muthoot Microfin Ltd's Total Liabilities amount to ₹ million.

Total Expenses of the company are a key factor in determining its profitability.

Muthoot Microfin Ltd's Total Expenses are ₹ million.

Total Revenue of the company is a measure of its overall earnings.

Muthoot Microfin Ltd's Total Revenue is ₹ million.

Profit After Tax is a key indicator of a company's profitability.

Muthoot Microfin Ltd's Profit After Tax is ₹ million.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a measure of a company's operating profit.

Muthoot Microfin Ltd's EBITDA is ₹ million.

Adjusted EBITDA is a measure of a company's operating profit, adjusted for certain items.

Muthoot Microfin Ltd's Adjusted EBITDA is ₹ million.

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The share price of Muthoot Microfin is expected to be around ₹322 tomorrow, based on the grey market premium (GMP) recorded at ₹31 on Monday.

The GMP is a good indicator of the expected returns on investment, as it suggests a potential 11 per cent increase from the IPO price band.

However, it's essential to note that the grey market premium is not a true indicator of the returns expected from an IPO, so investors should be cautious when making decisions based on this information.

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The Muthoot Microfin IPO has some key details to note. ICICI Securities Ltd, Axis Capital Ltd, JM Financial Ltd, and SBI Capital Markets Ltd will be the book-running lead manager of this IPO.

These firms have been entrusted with the responsibility of managing the IPO process. The issue price of the IPO is Rs 168.00, which is also the listing day close price.

Here are the key details of the IPO lead and registrar:

In the context of an IPO, the book-running lead manager is a crucial role that helps facilitate the offering. ICICI Securities Ltd, Axis Capital Ltd, and JM Financial Ltd, along with SBI Capital Markets Ltd, are the companies that take on this responsibility.

These four firms are responsible for managing the IPO process, ensuring a smooth execution, and helping the issuer raise the necessary funds.

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The registrar of Muthoot Microfin Ltd IPO is KFin Technologies Ltd. They play a crucial role in ensuring the smooth processing of the IPO.

KFin Technologies Ltd is the registrar for Muthoot Microfin Ltd IPO. This means they handle all the paperwork and compliance requirements for the IPO.

The registrar's role is to verify the details of the IPO and ensure that all necessary documents are in order. This helps to build trust with potential investors.

KFin Technologies Ltd is the registrar, and they are responsible for handling the IPO's paperwork and compliance.

Muthoot Microfin's IPO strategy is built on a strong foundation of market leadership with a pan-India presence. This allows the company to tap into a vast customer base across the country.

The company's rural focused operations are a key strength, with a commitment towards health and social welfare of customers. This approach has been a game-changer in the industry, setting Muthoot Microfin apart from its competitors.

The company's robust risk management framework has led to a healthy portfolio quality, which is a testament to its effective management. This framework has been instrumental in minimizing risks and maximizing returns.

Muthoot Microfin's access to diversified sources of capital and effective cost of funds is another significant strength. This allows the company to manage its finances efficiently and make informed decisions.

Here are some key strengths that will help drive Muthoot Microfin's growth:

Muthoot Microfin Ltd has a strong presence in the market, with a pan-India presence and a significant market share in South India, particularly in Kerala and Tamil Nadu.

Their business model is designed to drive financial inclusion, serving low-income groups in rural areas. This focus on rural markets has led to high growth potential in the microfinance segment.

The company's brand recall is enhanced by its association with the Muthoot Pappachan Group, a conglomerate with a diverse range of businesses. This partnership provides significant marketing and operational benefits.

Here are some key strengths of Muthoot Microfin Ltd:

The grey market premium, or GMP, of Muthoot Microfin has shown a small growth, reaching ₹31 on Monday.

This represents an 11 per cent increase from the price band of ₹279 to ₹291 set for the Muthoot Microfin IPO.

The GMP is a significant indicator of market sentiment, and its growth suggests that the listing price may exceed ₹300 on Tuesday.

Investing in an IPO like Muthoot Microfin can be a high-risk, high-reward proposition.

The company's financials show a net worth of ₹1,145.93 crore and a net profit of ₹83.33 crore in FY22.

One major risk is the volatility of the stock market, which can lead to significant losses if not managed properly.

Muthoot Microfin's IPO is priced at ₹27 per share, with a minimum investment requirement of 20 shares.

Investors should carefully consider their risk tolerance and financial goals before investing in the IPO.

The company has a significant market presence, being the third largest amongst NBFC-MFIs in South India in terms of gross loan portfolio, as of December 31, 2022.

Their business model has helped drive financial inclusion, serving customers from low-income groups, which is a commendable achievement.

Rural-focused operations have been a key factor in their growth, with a history of serving high-potential markets in the microfinance segment.

They've maintained a track record of financial performance and operational efficiency, with consistently high rates of customer acquisition and retention.

Their relationship with the Muthoot Pappachan Group provides brand recall and significant marketing and operational benefits, making them the second largest company under the group in terms of AUM for the Financial Year 2023.

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Having a strong brand recall can be a significant advantage in the market, especially when competing with other players.

Their presence in underpenetrated areas has also allowed them to expand their customer base and increase their market share, with an almost 16% market share in Tamil Nadu, as of December 31, 2022.

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Peer comparison is a crucial aspect of assessing IPO risks. It involves evaluating a company's performance against its industry peers.

A company's financial performance can be significantly impacted by its industry. For instance, a company in the technology sector may have different financial performance metrics compared to a company in the healthcare sector.

Peer comparison can help investors identify potential risks and opportunities in an IPO. By analyzing a company's financials against its peers, investors can gain a better understanding of its market position and growth prospects.

In the article, we saw that some companies have a higher debt-to-equity ratio compared to their peers, which can be a major concern for investors. For example, Company A had a debt-to-equity ratio of 1.2, while its peer Company B had a ratio of 0.8.

Peer comparison can also help investors assess a company's growth prospects. Companies with higher revenue growth rates compared to their peers may be more attractive to investors. In the article, we saw that Company C had a revenue growth rate of 20% compared to its peer Company D, which had a growth rate of 10%.

The Muthoot Microfin Ltd IPO is scheduled to take place from 18th to 20th Dec 2023.

The issue type is Book Building.

You can invest in the IPO at BSE and NSE.

In an IPO, shareholders play a crucial role in the company's ownership and decision-making process. The shareholder details section typically provides information about the individuals or entities that hold a significant amount of the company's shares.

Thomas John Muthoot is one of the shareholders, holding a 3.03% stake in the company's pre-Offer paid up equity share capital.

The Muthoot family is also represented among the shareholders, with Thomas George Muthoot and Thomas Muthoot holding 3.03% and 3.04% stakes, respectively.

Preethi John Muthoot, Remmy Thomas, and Nina George each hold a 1.30% stake in the company, indicating their significant involvement in the business.

MFL, likely a subsidiary or affiliate, holds the largest stake at 72.36%, giving it substantial influence over the company's operations and direction.

The reservation process for the Muthoot Microfin IPO is quite interesting. The total shares offered are 329,896,920, which is a significant number.

A total of 652,921,010 shares are reserved for Qualified Institutional Buyers (QIBs), which is 19.79% of the total shares offered. The Non-Institutional Investors (NII) category has been reserved 489,690,070 shares, which is 14.84% of the total shares offered.

The retail investors have been reserved the largest chunk of shares, with 114,261,170 shares, which is 34.64% of the total shares offered. This is great news for individual investors who want to participate in the IPO.

Here's a breakdown of the shares reserved for each category:

It's worth noting that the anchor investors have been reserved a significant portion of shares, with 979,381,400 shares, which is 29.69% of the total shares offered.