- By Aditya Pratap Singh
- Tue, 26 Dec 2023 10:35 AM (IST)
- Source:JND
Shares of Muthoot Microfin made a disappointing debut on the stock market on Tuesday. The upper band of the issue price was Rs. 291 and the shares started trading at Rs 275.30 with a discount of 5.5 per cent.
The microfinance company's IPO was opened for subscription on December 18-20 and oversubscribed 11.52 times, with qualified institutional buyers (QIBs) leading the way as they bid 17.47 times their allotted quota. Retail investors bought 7.61 times while high net-worth individuals (HNIs) bid 13.2 times for the reserved portion. The lot size of the offering was 51 shares, which means a bidder had at least spent Rs 14,127 to subscribe to the IPO.
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The Non-Banking Finance Company (NBFC) provides micro-loans to women consumers primarily in rural areas in India. It is the fifth largest NBFC-MFI (Micro-Finance Institution) in the gross loan portfolio as of March 31, 2023, and the third largest in South India. It has a strong presence in south India.
As per the information given in RHP, its customers typically have limited sources of income, savings and credit histories. Most customers do not have a credit history supported by tax returns, proper proof of income, bank or credit card statements, or other relevant documents. Hence, it becomes difficult for an NBFC to conduct credit risk consistently analyses on customers.
Muthoot Microfin IPO Details
Opened for Subscription- December 18-20
Price Range - Rs - 277-291
Lot size - 51
Minimum investment - Rs 14,127
Issue Size - Rs 960 cr
Muthoot Microfin Shares Listing Details
Listing date - December 26
Listing Price - Rs 275.30 per share on NSE
Gain or Loss Percentage - loss 5.5 per cent
Disclaimer: This is a report on listing only. Jagran does not advise investing, please consult an advisor before investing.
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