Muthoot Microfin is scheduled to announce the basis of allotment of its shares most likely on Thursday, December 21. Bidders will get the messages, alerts or emails for debit of their funds or revocations of their IPO mandate by Friday or over the weekend. The primary offering of the shadow lender had received a strong response from the investors.
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Muthoot Microfin sold its IPO in the price band of Rs 277-291 per share with a lot size of 51 shares, which was open for bidding between December 18 to December 20. The company aimed to raise a little more than 960 crore from its primary offering, which included a fresh share sale of Rs 760 crore and an offer for sale (OFS) of up to 2,61,16, 838 equity shares.
The issue was overall subscribed 11.52 times as the portion for qualified institutional bidders (QIBs) was booked 17.47 times, while the non-institutional investors’ category was subscribed 13.20 times. The quota reserved for retail investors and employees was subscribed 7.61 times and 4.95 times, respectively, during the bidding process.
Grey market premium (GMP) of Inox India has dropped about 60 per cent from its peak, thanks to the selling pressure in the broader markets. Last heard, the company was commanding a premium of Rs 22-25 per share, suggesting a listing pop of 8-10 per cent for the investors. However, it was around Rs 55-60 before the bidding for the issue commenced.
Muthoot Microfin, a subsidiary of the Muthoot Pappachan Group, specializes in providing micro-loans to female customers, with a particular emphasis on rural areas.
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It provides group loans for livelihood solutions, individual loans, life betterment solutions; health and hygiene loans; secured loans in the form of gold loans and more.
Brokerage firms were mostly positive on the issue of Muthoot Micro and suggested subscribing to it on the back of strong hold, robust growth potential, lower cost of borrowing and deep penetration in the market. However, rate sensitive business, potential NPAs and rising competition were flagged as the key concerns for the business.
ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets serve as the book running lead managers for the Muthoot Microfin IPO, with Kfin Technologies as the designated registrar. Shares of the company will be listed on both BSE and NSE, with December 26, Tuesday, as the tentative date of listing.
Investors, who bid for the issue of Inox India , can check the allotment status on the BSE website’s IPO application check page. Check-in equity, under the issue type and select Muthoot Microfin Limited in the dropbox; type-in the application number and add the PAN card number before checking-in at ‘I am not a Robot’ before hitting the submit button.
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Allotment status can also be checked through the online portal of Kfin Technologies, the registrar to the issue. Visit the web portal of Kfin Tech and select the IPO of Muthoot Microfin in the dropbox. Enter the either PAN Card number, Application Number or DP Client ID as selected tab and hit ‘search’ to get the allotment status for your application.
