Muthoot Finance, a part of the diversified Muthoot Group
India’s largest gold loan lender Muthoot Finance, a part of the diversified Muthoot Group, said it will raise up to Rs 900 crore from an initial public offer (IPO) that opens on Monday (April 18).
“The issue, priced in a band of Rs 160-175 per share, would see the company issuing 5.15 crore fresh equity shares or 13.85 per cent dilution of the promoters holding. This would bring down the promoters’ stake in the family-run enterprise to 80.12 %,” Group Chairman MG George Muthoot told reporters in Mumbai.
Depending on the price band, the Kerala-based firm will be able to mop up between Rs 824 crore and Rs 901 crore from the issue that closes on April 21.
The existing private equity partners – Baring India, Matrix Partners India, Kotak India PE, Welcome Trust UK and Kotak Investment Advisors – which together hold around 7 % in the company, would continue with the firm, at least for the next one year, he added.
Muthoot Finance enjoys a 20 per cent market share (according to Imacs Research) in the Rs 65,000-crore organised gold loan market and has a nationwide presence with 2,611 branches spanning 25 states barring the Northeast. It has outstanding advance of Rs 13,000 crore as of November last, against gold ornaments, which is worth 97 tonnes.
The Chairman said the IPO proceeds will be utilised to augment capital base for meeting future capital requirements, for funding of loans and for general corporate purposes.
Rating agencies Crisil and Icra have assigned a grade of ‘4 on 5’ to the issue, indicating above average rating.
ICICI Securities, Kotak Mahindra Capital and HDFC Bank are the lead managers to the issue.
Processing your request, Please wait....
