Muthoot Microfin IPO: Muthoot Microfin IPO subscribed 11.52 times on last day of offer: Check GMP, other details

Muthoot Microfin IPO, with an initial public offering size of Rs 960 crore, witnessed a subscription of 11.52 on the final day, surging from the 2.83 times recorded on Tuesday. According to NSE data, the Rs 960 crore IPO received bids for 28,09,80,216 shares, surpassing the 2,43,87,447 shares offered.
The Qualified Institutional Buyers (QIBs) category for Muthoot Microfin IPO was oversubscribed by 17.47 times, the non-institutional investors’ portion received 13.20 times subscription, and the Retail Individual Investors (RIIs) section was subscribed 7.61 times.
Muthoot Microfin IPO price band
Muthoot Microfin is offering its shares in the price range of Rs 277-291 per share, and investors have to bid for a minimum of 51 shares in one lot.
Muthoot Microfin IPO GMP
As per market analysts, the present Grey Market Premium (GMP) for Muthoot Microfin has decreased to Rs 35 in the unlisted market from Rs 60 reported on the preceding day.
About Muthoot Microfin IPO
The initial public offering (IPO) consisted of a new issue amounting to Rs 760 crore and an offer-for-sale (OFS) of Rs 200 crore. In the OFS segment, shares will be divested by promoters Thomas John Muthoot, George Muthoot, Preethi John Muthoot, Remmy Thomas, and investor Greater Pacific Capital.
Muthoot Microfin IPO anchor investor details
Before the IPO, the company secured Rs 285 crore from 26 anchor investors.
About Muthoot Microfin
Muthoot Microfin holds the position of the fourth-largest microfinance company in India based on its gross loan portfolio. In the southern region, it is recognized as the third-largest, with Kerala boasting the largest market share, and it plays a significant role in Tamil Nadu with almost 16% share.
Muthoot Microfin IPO review
Analysts recommended investors consider subscribing to the IPO with caution, acknowledging that the company may face vulnerability to interest rate fluctuations and potential competition within the microfinance sector.
Anand Rathi said that the company has a market leadership with a pan India presence. Also, it is a part of the prestigious Muthoot Pappachan group. “We believe that valuations of the company are fairly priced and recommend a Subscribe-Long Term rating to the IPO,” said Anand Rathi.
“Despite some risks, Muthoot Microfin’s attractive valuation, with a P/E of 20.50x and a P/BV of 2.09x, positions it favourably in the current market landscape. Therefore, we recommend considering this IPO with a measured approach, acknowledging both its potential and inherent risks,” said Swastika Investmart.