Muthoot Microfin makes a muted debut on BSE, NSE; shares lists at 5% discount

Shares of Muthoot Microfin Ltd made a muted listing on Dalal Steet Street, as the NBFC debuted at Rs 275.30 apiece on NSE, 4.56 per cent discount to its issue price of Rs 291 apiece. The scrip got listed at Rs 278 on BSE, down 4 per cent over the issue price.

Ahead of its listing, Muthoot Microfin was commanding a premium of Rs 25-30 per share in the grey market, which suggested a listing pop of 10-12 per cent. The premium in fact was in the three digits before ahead of the bidding process.

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 reserved for qualified institutional bidders (QIBs) was booked 17.47 times, while the non-institutional investors' category was subscribed 13.20 times. The quotas reserved for retail investors and employees were subscribed 7.61 times and 4.95 times, respectively, during the bidding process.

Muthoot Microfin, a subsidiary of the Muthoot Pappachan Group, specialises in providing micro-loans to female customers, with a particular emphasis on rural areas. 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.

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.

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