Muthoot Fin arm refiles draft papers with Sebi for Rs 1,350-crore public issue

economictimes.indiatimes.com:

Muthoot Microfin Ltd has refiled a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for a public issue worth Rs 1,350 crore. This comprises a fresh issue of shares worth up to Rs 950 crore and an offer for sale of shares by promoters and institutional investors worth up to Rs 400 crore. The selling shareholders are Thomas Muthoot, Thomas John Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George, who form a part of the promoter group.

Besides them, Greater Specific Capital WIV will also be offering its shares. In early 2018, the company had filed papers for an IPO and also received the market regulator’s approval. However, it did not go ahead and launch the public offer due to tough market conditions following the IL&FS fraud-led liquidity crisis for non-bank lenders.Muthoot Finance is part of the promoter group, holding a 54.16% stake in the microfinance arm.

The microfinance firm aims to augment its capital base through the proceeds from the initial public offering. As per the Reserve Bank of India regulations, microfinance institutions are required to maintain a minimum capital adequacy of 15% consisting of tier-I capital and tier-II capital. As of March end, the company’s capital adequacy was 21.87%, of which, tier-I capital base was 21.87%.