Muthoot Microfin refiles DRHP with Sebi for Rs 1,350 crore IPO

Muthoot Microfin, the microfinance subsidiary of Muthoot Pappachan group, has filed draft papers with market regulator Securities and Exchange Board of India (Sebi) to raise Rs 1,350 crore via initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares amounting to Rs 950 crore and an offer for sale aggregating up to Rs 400 crore.

This is the second time the company has filed a draft red herring prospectus (DRHP) with Sebi for IPO. Earlier in 2018, it had received Sebi approval but did not go for it as the market turned choppy following the IL&FS fraud-led liquidity crisis for non-bank lenders.

The lender with assets under management of Rs 9200 crore at the end of March is one of the top five NBFC-MFIs in terms of business volume. It reported Rs 203 crore net profit for FY23, against Rs 80 crore in the preceding fiscal while its gross non-performing assets ratio improved to 2.9% at the end of March against 6.3% a year back.

According to the latest DRHP, promoters including Thomas John Muthoot would look to dilute their holding through the offer for sale while Greater Pacific Capital WIV Ltd would like to sell equity shares aggregating up to Rs 100 crore.

Equity shares amounting to Rs 300 crore held by Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas and Nina George collectively will be offered.

Individual promoters together hold 9.73% in the company while Muthoot Finance holds 54.16% as on date. Greater Pacific holds 25.15%. Creation Investment India LLC, which will not take part in OFS, holds 8.33%. The balance is held by employees.

Muthoot Microfin is the fourth-largest NBFC-MFI in India in terms of gross loan portfolio as of December 31, 2022.

ICICI Securities, Axis Capital, JM Financial and SBI Capital Markets are the book-running lead managers to the proposed issue.