Muthoot Microfin Limited, the microfinance arm of the Muthoot Pappachan Group plans to raise up to Rs 1,350 crore through an initial share sale and has refiled its draft papers with markets regulator Securities and Exchange Board of India.
The Initial Public Offering (IPO) of the company that provides micro loans to women customers will comprise a fresh issue worth up to Rs 950 crore and an Offer For Sale (OFS) of equities to the tune of Rs 400 crore.
According to the Draft Red Herring Prospectus (DRHP) filed on Friday, the company will also look at pre-IPO placement to raise Rs 190 crore. If that placement is undertaken, the size of the fresh issue will be reduced.
Where will the proceeds be used?
The company plans to use proceeds from the fresh issue for augmenting its capital base to meet future capital requirements.
Through the OFS route, various entities plan to offload Rs 400 crore-worth shares. While Greater Pacific Capital WIV Ltd proposes to offload equities worth up to Rs 100 crore, Thomas John Muthoot, Thomas Muthoot and Thomas George Muthoot plan to sell shares aggregating up to Rs 70 crore each.
Besides, shares valued up to Rs 30 crore are planned to be offloaded, each by Preethi John Muthoot, Remmy Thomas and Nina George, as per the DRHP.
"We are planning a Rs 1,500-1,800-crore IPO by the fourth quarter of 2023 and expected to file the IPO papers with the Sebi by May 2023," told Thomas Muthoot, managing director of Muthoot Microfin to PTI in November 2022.
The company, part of the Muthoot Pappachan Group, had a gross loan portfolio of Rs 9,208.29 crore at the end of March 31.
ICICI Securities, Axis Capital, JM Financial and SBI Capital Markets are the Book Running Lead Managers to the issue.
With inputs from Agencies.