Muthoot Microfin has set the price band of its initial public offering (IPO) that will be open for subscription from December 18-20. The IPO’s price band has been fixed at ₹277-291 per equity share of the face value of ₹10.
Also, the floor price is 27.70 times the face value of the equity shares, while the cap price is 29.10 times. Further, the lot size is 51 equity shares, followed by multiples of 51 equity shares thereafter.
IPO size
Through the IPO, the Kochi-based microfinance institution (MFI) aims to raise ₹960 crore, of which up to ₹760 crore is for fresh issue of shares, while the remaining ₹200 crore is an offer for sale (OFS) of equity shares with a face value of ₹10 each.
Promoters selling their shares
These include Thomas John Muthoot (up to ₹16.36 crore), Thomas Muthoot (up to ₹16.38 crore), Thomas George Muthoot (up to ₹16.36 crore), Preeti John Muthoot (up to ₹33.74 crore), Remmy Thomas (up to ₹33.3 crore), and Nina George (up to ₹33.76 crore)/
Important dates
While the subscription opening and closing dates are December 18 and 20, respectively, the allotment of shares is expected to be finalised on December 21, with the company set to both initiate refunds and credit these to the allottess’ demat account the following day (December 22).
The IPO share price, on the other hand, is likely to be listed on the stock exchanges on December 26.
Reservation of shares
Muthoot Microfin has reserved a maximum of 50% shares for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII) and a maximum of 35% for the retail investors.
Meanwhile, eligible employees bidding for shares under the employee portion are getting a discount of ₹14 per equity share.
What will company do with net proceeds?
It intends to increase its capital base in order to meet future capital requirements.