Muthoot Finance's arm Belstar Microfinance submits Rs 1,300 crore IPO prospectus with SEBI
Muthoot Finance's microfinance arm, Belstar Microfinance, has filed preliminary papers with capital markets regulator SEBI to raise Rs 1,300 crore through an initial public offering (IPO).
Belstar Microfinance, a Non-Banking Finance Company — Micro Finance Institution (NBFC-MFI), offers a wide range of loan products, such as micro-enterprise, small enterprise, consumer goods, festival, education and emergency loans.
The IPO is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an offer-for-sale (OFS) of Rs 300 crore by investor shareholders.
As part of the OFS, Danish asset management firm MAJ Invest intends to offload shares worth Rs 175 crore, followed by Arum Holdings Ltd (Rs 97 crore) and Augusta Investments Zero Pte Ltd (Rs 28 crore). MAJ Invest initially invested in Belstar Microfinance in 2018 and later in 2022.
At present, Muthoot Finance, which is one of the promoters, holds a little over 66% stake in Belstar Microfinance.
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Proceeds from the fresh issue worth Rs 760 crore will be used to meet future capital requirements towards onward lending and the remaining amount will be used for general corporate purposes.
For the nine months ended December 2023, the microfinance firm reported a profit of Rs 235 crore on revenue of Rs 1,283 crore.
ICICI Securities, Axis Capital, HDFC Bank and SBI Capital Markets are the book-running lead managers to the offer.
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