Muthoot Finance's arm Belstar Microfinance files DRHP with SEBI for ₹1,300 crore IPO
Muthoot Finance, submitted draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) to raise ₹1,300 crore through an initial public offering (IPO). According to the draft red herring prospectus (DRHP), the initial public offering (IPO) of the Chennai-based company comprises a ₹1,000 crore fresh issue of equity shares and an offer-for-sale (OFS) of ₹300 crore by existing investor shareholders.
Also read: Aadhar Housing Finance IPO to open on May 8; what does GMP indicate before subscription? In the Offer for Sale (OFS), Danish asset management firm MAJ Invest intends to divest shares valued at ₹175 crore, with subsequent sales by Arum Holdings Ltd ( ₹97 crore) and Augusta Investments Zero Pte Ltd ( ₹28 crore). Maj Invest had first invested in Belstar Microfinance in 2018 and again in 2022.
Currently, Muthoot Finance, one of the promoters, possesses slightly more than 66 percent ownership in Belstar Microfinance. The proceeds generated from the fresh issue, valued at ₹760 crore, will be allocated towards meeting future capital requirements for onward lending, with the remaining sum earmarked for general corporate purposes.
Belstar Microfinance, an NBFC-MFI, extends a diverse array of loan products encompassing micro enterprise, small enterprise, consumer goods, festival, education, and emergency loans. Also read: TBO Tek IPO to open on May 8; here's what GMP signals ahead of subscription Primarily, its lending model revolves around the 'self-help group' (SHG) model, constituting 57 percent of the total loan portfolio as of December 31, 2023.
Read more on livemint.com
