Muthoot Microfin Ltd (MML) shares debuted at a 5.40% discount to the IPO price on Tuesday, December 26. The NSE listing commenced at ₹275.30 compared to the offer price of ₹291, reflecting a discount of 5.40%. Similarly, on the BSE, the stock was listed at ₹278, marking a 4.46% decrease.
Backed by Muthoot Pappachan Group, Muthoot Microfin’s shares were commanding a ₹27 premium in the grey market, indicating potential gains of 9% at the time of listing. The grey market premium (GMP) serves as an indicator of how the company’s shares are valued in the unlisted market, subject to rapid changes.
The ₹960-crore IPO garnered a subscription of 11.52 times at closing. Notably, the subscription rate was 2.83 times on the second day and 0.83 times on the opening day.
Qualified institutional buyers (QIB) demonstrated strong interest, subscribing 17.47 times, while the Non-Institutional Investors (NII) category recorded a subscription of 13.20 times. Retail individual investors (RIIs) also participated actively, with a subscription rate of 7.61 times.
Muthoot Microfin offered its shares in the range of ₹277-291 per share, allowing investors to bid for a minimum of 51 shares in one lot.
On the financial front, the company exhibited robust performance with a 72% YoY increase in revenue to ₹1,042 crore, and a multifold rise in profit to ₹205 crore for the six months ending September 2023.
Muthoot Microfin holds a significant position in the NBFC-MFI sector, ranking as the fifth-largest in India, the third-largest in South India, and the largest in Kerala by MFI market share. It also maintains a prominent presence in Tamil Nadu, holding an almost 16% market share as of March 2023.
As of September 2023, the gross loan portfolio amounted to ₹10,870 crore, serving 31.9 lakh active customers. The company operates through 1,340 branches across 339 districts in 18 states and Union Territories in India, with a dedicated workforce of 12,297 employees.
