About the Company
Established in April 1992, Muthoot Microfin Limited, a subsidiary of the esteemed Muthoot Pappachan Group, specializes in providing micro-loans to women in rural areas across India.
The company offers a range of financial solutions, including:
- Group Loans for Livelihood Enhancement: These encompass income-generating loans, Pragathi loans (designed to support working capital and income-generating activities for existing customers), and individual loans.
- Life Betterment Solutions: This category includes loans for essential items such as cell phones, solar lights, and household appliances, aiming to improve the overall quality of life.
- Health and Hygiene Loans: Muthoot Microfin extends support through loans dedicated to enhancing sanitary facilities, contributing to improved health and well-being.
- Secured Loans: The company provides secured loans in the form of gold loans and Muthoot Small & Growing Business (MSGB) loans, offering a reliable means of financial assistance.
In a significant stride towards modernization, the year 2021 saw the introduction of the “Mahila Mitra” mobile application by the company. This innovative tool facilitates digital payments, aligning with the evolving financial landscape and catering to the diverse needs of its customer base.
Muthoot Microfin IPO Details
| IPO Date | December 18, 2023 to December 20, 2023 |
| Face Value | ₹10 per share |
| Price Band | ₹277 to ₹291 per share |
| Lot Size | 51 Shares |
| Total Issue Size | 32,989,690 shares (aggregating up to ₹960.00 Cr) |
| Fresh Issue | 26,116,838 shares (aggregating up to ₹760.00 Cr) |
| Offer for Sale | 6,872,852 shares of ₹10 (aggregating up to ₹200.00 Cr) |
| Employee Discount | ₹14 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 116,837,249 |
| Shareholding post issue | 142,954,087 |
Muthoot Microfin IPO Lot Size
| Application | Lots | Shares | Amount (₹) |
| Retail (Min) | 1 | 51 | ₹14,841 |
| Retail (Max) | 13 | 663 | ₹192,933 |
| S-HNI (Min) | 14 | 714 | ₹207,774 |
| S-HNI (Max) | 67 | 3,417 | ₹994,347 |
| B-HNI (Min) | 68 | 3,468 | ₹1,009,188 |
Muthoot Microfin IPO GMP
Muthoot Microfin IPO GMP is ₹55 as on 19th December, 2023.
Muthoot Microfin Limited Financial Information
₹ in Crore
| Particulars | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 8,529.20 | 8,529.20 | 4,183.85 |
| Revenue | 1,446.34 | 842.94 | 696.28 |
| Profit after Tax | 163.89 | 47.40 | 7.05 |
Key Performance Indicator
| KPI | Values |
| P/E (x) | 24.96 |
| Post P/E (x) | 25.38 |
| Market Cap (₹ Cr.) | 4960.82 |
| ROE | 11.06% |
| Debt/Equity | 3.99 |
| EPS (Rs) | 11.98 |
| RONW | 10.08% |
Strengths
- Established Track Record: Muthoot Microfin Limited benefits from a solid track record as a subsidiary of the well-established Muthoot Pappachan Group, bringing with it the experience and reputation of a renowned financial institution.
- Diverse Product Portfolio: The company’s diverse range of financial products, including group loans, individual loans, and secured loans, allows for flexibility and caters to the varied financial needs of its customer base.
- Focus on Rural Empowerment: Muthoot Microfin’s focus on providing micro-loans to female customers in rural regions aligns with the financial inclusion goals, contributing to the empowerment and economic development of underserved communities.
Risks
- Market and Economic Volatility: The company is exposed to the inherent risks associated with market fluctuations and economic uncertainties, which can impact the repayment capacity of borrowers and overall financial stability.
- Regulatory Environment: Changes in regulatory policies and compliance requirements in the microfinance sector may pose challenges for Muthoot Microfin, requiring adaptability to evolving legal frameworks and potential impact on operational efficiency.
- Credit Risk and NPA Concerns: As a financial institution, Muthoot Microfin faces the risk of non-performing assets (NPAs) due to factors such as economic downturns, borrower defaults, or unforeseen circumstances affecting the repayment behaviour of its clients. Vigilant risk management practices are crucial in mitigating these concerns.
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