Muthoot Microfin IPO to open on December 18 — Here’s all you need to know about ₹960 crore issue

livemint.com:

₹960-crore initial public offering (IPO). Interested investors have until December 20 to subscribe to the public issue. The details regarding the price band will be disclosed in the coming days.

The anchor book of the issue will be held on December 15. The IPO comprises a fresh release of shares valued at ₹760 crore by the microfinance institution, coupled with an offer-for-sale (OFS) of ₹200 crore worth of shares by existing shareholders. Among the sellers in the OFS are promoters such as Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George, collectively divesting ₹150 crore worth of shares.

Additionally, investor Greater Pacific Capital WIV will be divesting ₹50 crore worth of shares in the OFS. Company promoters, which include Muthoot Microfin, maintain a 69.08 percent ownership stake, while the remaining 28.53 percent is in the hands of public shareholders. Among these shareholders are Greater Pacific Capital WIV, holding a 19.06 percent stake, and investment management firm Creation Investments India LLC, with a 9.01 percent stake.

Additionally, Muthoot Microfin has earmarked shares worth ₹10 crore for its employees, who may have the opportunity to acquire these shares at a discounted rate compared to the final issue price. The net issue proceeds from the offering will primarily be allocated to bolstering its capital base, ensuring sufficient resources to meet future capital demands. Being categorized as an NBFC-MFI, the organization is mandated to uphold a minimum Capital to Risk-Weighted Assets Ratio (CRAR) of 15 percent, encompassing both Tier I and Tier II capital.