Muthoot Microfin, a part of Kerala-based Muthoot Pappachan group, has scaled down the size of its upcoming initial public offer by about 30% to Rs 960 crore from Rs 1,350 crore, as promoters wanted to minimise dilution following a good two quarters of earnings.
The NBFC-MFI meanwhile is targeting to raise around Rs 285 crore from anchor investors, which is the maximum permissible limit according to rules prescribed by the Securities & Exchange Board of India.
The internal accruals through ploughing back of profits was another reason behind lowering the size of IPO, people familiar with the matter said.
The lender earned Rs 110 crore net profit for the quarter ending September 30, which was about 14.5% higher than what it was in the preceding fiscal. Its net profit for FY23 was Rs 203 crore against Rs 80 crore in the preceding year.
Its assets under management grew 46% year-on-year to Rs 10,867 crore at the end of September.
The IPO, which will hit the market on December 18 with a price band of Rs 277 to Rs 291 per equity share, comprises fresh issue of equity shares aggregating to Rs 760 crore and an offer-for-sale (OFS) aggregating to Rs 200 crore by the selling shareholders.
Under the OFS, promoters Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas and Nina George will offload shares. They collectively hold 9.79% in the company while institutional promoter Muthoot Fincorp holds 59.29%.They will offload shares for Rs 150 crore
Greater Pacific, which holds 19.06%, will sell shares aggregating to Rs 50 crore through OFS. Creation Investment India LLC, which will not take part in OFS, holds 9.01%. The balance is held by employees.
During the filing of application in July, the company had sought permission for a Rs 1,350-crore IPO comprising a fresh issue worth Rs 950 crore and an offer-for-sale up to Rs 400 crore.
The lender proposes to utilise the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements. The company’s capital adequacy stood at 21.9% at the end of March.
Investors planning to subscribe to the issue will have to put bids for a minimum 51 equity shares and in multiples of 51 shares thereafter.
