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Muthoot Microfinance tumbles 8.5% on listing day

Shares of the Muthoot Pappachan Group company Muthoot Microfinance were listed on a lacklustre note at the bourses on Tuesday. As against the issue price of ₹291, shares were listed at ₹278 and slipped further to hit a low of ₹265.30 on the BSE. The stock closed at ₹266.20, down 8.52 per cent against the IPO price. On the NSE, the stock closed at ₹266.15.

The ₹960-crore offer, which comprised a fresh issue of ₹700 crore and an offer-for-sale (OFS) of ₹200 crore, was subscribed to 11.52 times. Investor shareholders who offloaded in the IPO included Greater Pacific Capital WIV and promoters Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George.

While the retail investors’ portion was subscribed 7.6 times, the non-institutional quota was bid for 13.2 times, and the QIB portion for 17.47 times.

As part of the IPO process, the company raised ₹285 crore from 26 anchor investors at ₹291 a share. Among them were Morgan Stanley, Societe Generale, Copthall Mauritius Investment, ICICI Prudential Life Insurance, HDFC Life Insurance, Bajaj Allianz Life Insurance, Kotak Mahindra Life Insurance, and SBI General Life.

The company plans to use the proceeds to augment its capital base.

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