Muthoot Microfin IPO – Review, Allotment status, Subscription, GMP & more

Muthoot Microfin is one of the leading micro-finance institutions focused on providing micro-loans to women customers with a focus on rural regions of India. The Company is the fifth largest NBFC-MFI in India in terms of gross loan portfolio, as of March 31, 2018, according to CRISIL Research. Muthoot Microfin IPO comprises of up to 16,310,072 Equity Shares (offered for sale) and aggregating up to Rs.5,000 million.

Let’s have a detailed review of the company and analytics of the Muthoot Microfin IPO release date, IPO offer price, subscription, Muthoot Microfin IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

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Muthoot Microfin IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments7.8/10
Industry Ranking7.7/10
Company Background7.9/10
Company Reputation7.4/10
Competitive Edge7.7/10
Financial Statements7.8/10
Popularity Index7.7/10
Promoters Reputation7.7/10
Retail Appetite7.4/10
Top Brokers Review7.4/10
Overall Ratings7.7/10
Star Ratings★★★★☆

Summary of Muthoot Microfin   IPO

Muthoot Microfin IPOMuthoot Microfin  is one of the leading micro-finance institutions focused on providing micro-loans to women customers with a focus on rural regions of India. The Company  is the fifth largest NBFC-MFI in India in terms of gross loan portfolio, as of March 31, 2018, according to CRISIL Research. The Comapny has 1.2 million active borrowers, who are served by their 467 branches across 168 districts in 16 states and union territories in India, as of March 31, 2018. The Issue comprises of a Public Issue of  Equity shares of face value of Rs.10.00 each fully paid .

From FY 2014-15 to FY 2016-2017, as per the Restated Financial Statements:

From fiscal 2016 to 2017, company’s revenue from operations and net profit has increased at a growth rate of 367.53% and 85.02%, respectively.

For the period ended December 31, 2018, FY 2016-17 and FY 2015-16, its revenue from operations was Rs. 4,511.44 million, Rs.2,438.42 million and Rs.521.55 million, respectively representing growth of 367.53% from the FY 2015-16 to FY 2016-17. For the period ended December 31, 2018, FY 2016-17 and FY 2015-16 the net profit was Rs.1,142.35 million, Rs.572.22 million and Rs.146.01 million, respectively, representing a growth of 291.90% from the FY 2015-16 to FY 2016-17.

  • During the financial year 2016-17 the Other Income of our company increased to Rs. 82.72 million as against Rs.  0.03 million for the financial year 2015-16, representing increase by 814.91% due to increase in interest income & insurance claim in FY 2016- 17.
  • Company’s Net Profit after tax for the year 2018 is Rs. 760.07 Lacs from the year 2017 of Rs.  370.38 Lacs showing an increase of  105.21% from last year, showing remarkable performance.

The Promoter of this company are Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John, Remmy Thomas, Nina George and MUTHOOT FINCORP LIMITED. The lead managers to the issue are Edelweiss Financial Services Limited, Motilal Oswal Investment Advisors Limited, Credit Suisse Securities (India) Private Limited & SMC Capitals Limited and the Registrar to this issue is Karvy Computershare Private Limited.


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    Muthoot Microfin IPO Date

    The opening and the closing date of IPO of Muthoot Microfin is not known yet.


    Muthoot Microfin IPO Subscription

    Day / DateQIBNIIRIITotal Subscription
    Day 1   
    Day 2    
    Day 3    
    Day 4    
    Day 5    

    The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


    Muthoot Microfin IPO Allotment Status

    This being the first public offer of the Company, there has been no formal market for the Equity Shares of the Company. Allotment  status will be known once the shares are subscribed.


    Muthoot Microfin IPO Price Band

    The face value of each share is Rs.10, but the price band of the IPO is not yet disclosed. 


    Muthoot Microfin Limited – Company Overview

    Muthoot Microfin Private Limited is one of the leading micro-finance institutions focused on providing micro-loans to women customers with a focus on rural regions of India. The Company  is the fifth largest NBFC-MFI in India in terms of gross loan portfolio, as of March 31, 2018, according to CRISIL Research. They have 1.2 million active borrowers, who are served by the 467 branches across 168 districts in 16 states and union territories in India, as of March 31, 2018. The Company’s gross loan portfolio was Rs.29,202.97 million, while the gross loan portfolio in South India was Rs.24,856.50 million, the gross loan portfolio was serviced by 5,583 employees, as of March 31, 2018.

    The Company is part of the Muthoot Pappachan Group, which is one of the leading business conglomerates in South India, with presence across financial services, automotive, hospitality, real estate, healthcare, information technology, precious metals and alternate energy sectors.

    The Company is promoted by Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John, Remmy Thomas, Nina George and MFL.who are the guiding force behind the growth and strategic decisions of the Company.

    Competitive Strengths of Muthoot Microfin Limited:

    • Market leadership in India with a widespread distribution network
    • Brand recall and synergies with Muthoot Pappachan Group
    • Robust risk management framework leading to healthy portfolio quality
    • Strong track record of financial performance
    • Access to diversified sources of capital and effective cost of funds.
    • Experienced and Professional Management Team

    Business strategies of Muthoot Microfin Limited:

    • Diversification of Revenue Streams and Cross-Selling of Products and Services
    • Expand the geographical footprint and sourcing platform across India
    • Continue to Enhance Information Technology with a Focus on Customer Service
    • Diversifying Sources of Funds

    Muthoot Microfin Limited – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

    Financial Summary:

    Amount (in INR & Millions)
    31-Dec-1831-Dec-1731-Dec-1631-Dec-1531-Dec-14
    Total Assets24,753.56  14,652.815,279.09 52.88 55.28
    Total Revenue4,511.44  2,438.42 521.553.80 4.68
    Total Expense3,451.81  1,866.23 375.566.09 5.13
    Profit After Tax760.07    370.3894.10(1.58)(0.11)

    Earnings per Equity Share (in Millions)

    31-Dec-1831-Dec-1731-Dec-16
    Basic 8.894.88 2.10
    Diluted 8.314.81 2.10

    From the above statements, one could find that the Muthoot Microfin Limited may perform well.


    Muthoot Microfin IPO – Promoters

    The Promoter of this company are:

    1. Thomas John Muthoot,
    2. Thomas Muthoot,
    3. Thomas George Muthoot,
    4. Preethi John,
    5. Remmy Thomas,
    6. Nina George 
    7. MFL

    List of Related Parties (Key Managerial Personnel)

    • Thomas George Muthoot, Director of holding company
    • Thomas John Muthoot, Director of holding company
    • Thomas Muthoot, Director of holding company
    • Sadaf Sayeed, Chief executive officer

    Interest in promotion of the Company

    Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

    Property Interest

    The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

    Interest in Intellectual Rights of the Company

    Promoters has not shown any interest in acquiring the intellectual rights of the company.


    Muthoot Microfin IPO Offer Details or Issue Details

     Particulars No. Of Equity Shares
     Equity Shares Offered Up to [●] Equity Shares, aggregating up to Rs. [●] million
     Of which:Up to [●] Equity Shares, aggregating up to Rs. 5,000 million ,Offer for sale -Up to 16,310,072 Equity Shares, aggregating up to Rs. [●] million
     Reserved for Market Makers Not more than [●] Equity Shares
     Net Issue to the Public Not less than [●] Equity Shares
     Of which:
     Retail Investors Portion Not less than [●] Equity Shares
     Non-Retail Investors PortionNot less than [●] Equity Shares
     Equity Shares outstanding prior to the Issue102,878,211 Equity Shares
     Equity Shares outstanding after the Issue[●] Equity Shares

    Muthoot Microfin IPO Issue Object

    These are the IPO Issue Objects of the company

    •  provisioning of credit to customers, including formal and informal self help groups, individuals and associations, operation of micro leasing facilities, micro finance related hire purchase;
    •  providing credit for buying, selling and supplying industrial and agricultural inputs, livestock, machinery and industrial raw materials to poor persons and to act as agent for any association for the sale of such goods or livestock, encouragement of investment in cottage industries and income generating project for poor persons;
    •  mobilizing and providing financial and technical assistance and training to Microenterprises /Clients, provision of loans to microfinance clients for home improvement and Consumer credits and to give financial assistance to other Micro Finance Institutions in the form of Term Loan.

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    Muthoot Microfin IPO – Basis of the Offer Price

    The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

    Qualitative factors are:

    • leadership in India with a widespread distribution network;
    •  Brand recall and synergies with Muthoot Pappachan Group; 
    • Robust risk management framework leading to healthy portfolio quality;
    •  Strong track record of financial performance;
    • Access to diversified sources of capital and effective cost of funds;
    • Streamlined operating model with effective use of technology; 
    • Experienced and Professional Management Team;

    The relevant quantitative factors are:

    Basic  EPSDiluted EPSRONW (%)NAV (Rs.)
    31-Dec-162.102.1013.6059.76
    31-Dec-174.884.8119.60
    31Dec-188.898.3112.36
    • Industry P/E Ratio:
    ParticularsP/E ratio
    Average242.0x
    Highest633.0x
    Lowest36.2x

     


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    Muthoot Microfin IPO Lead Managers

    Lead Managers
    GLOBAL CO-ORDINATORS AND BOOK RUNNING LEAD MANAGERS

    Edelweiss Financial Services Limited

    Motilal Oswal Investment Advisors Limited

    Credit Suisse Securities (India) Private Limited

    BOOK RUNNING LEAD MANAGER

    SMC Capitals Limited

    Muthoot Microfin IPO Registrar to offer

    Registrar to the Offer
    Karvy Computershare Private Limited
    Karvy Selenium Tower B, Plot 31-32, Financial District,
    Nanakramguda Gachibowli, Hyderabad 500 032, Telangana, India
    Telephone: (+91) 40 6716 2222; Facsimile: (+91) 40 2300 1153; Email: einward.ris@karvy.com
    Investor grievance email: muthoot.ipo@karvy.com; Website: www.karisma.karvy.com
    Contact person: M Murali Krishna; SEBI Registration No.: INR000000221

    Other Details:

    • Statutory Auditor – M/s. Walker Chandiok & Co., LLP
    • Peer Review Auditor –Walker Chandiok & Co. LLP., Chartered Accountants
    • Bankers to the Company –  State Bank of India, Axis Bank ,ICICI Bank and Union Bank limited.

    Muthoot Microfin IPO Review by Top 10 Stock Brokers

    Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
    Angel Broking7.7/107.7/107.8/107.3/107.7/10
    Sharekhan7.4/107.4/107.5/107.7/107.8/10
    Kotak Securities7.7/107.4/107.3/107.8/107.5/10
    ICICI Direct7.8/107.7/107.5/107.5/107.7/10
    IIFL7.5/107.8/107.3/107.7/107.5/10
    Edelweiss7.3/107.5/107.7/107.3/107.3/10
    Zerodha7.7/107.3/107.7/107.5/107.7/10
    5Paisa7.9/107.5/107.8/107.3/107.3/10
    Karvy7.7/107.3/107.5/107.5/107.7/10
    Motilal Oswal7.9/107.7/107.3/107.3/107.7/10

    Muthoot Microfin IPO Grey Market Premium

    The Muthoot Microfin IPO Grey Market Premium price is Rs.X, the Kostak rate is Rs.X and the Subject to Sauda is X. 


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