Muthoot Microfin IPO Subscribed 2.83 Times On Day 2

Muthoot Microfin Ltd. launched its initial public offer on Monday.

The IPO was subscribed 2.83 times on Day 1. The three-day IPO will close on Wednesday.

The IPO by the Kochi-based microfinance company comprises a fresh issue of shares worth Rs 760 crore and an offer for sale of Rs 200 crore by promoters and shareholders, according to the red herring prospectus. Through a fundraise of Rs 960 crore in total, Muthoot Microfin intends to increase its capital base to meet future capital requirements.

The price band of Muthoot Microfin IPO is fixed at Rs 277–291 per equity share.

The company's promoters are expected to sell equity shares worth Rs 150 crore. Among other investors, Greater Pacific Capital WIV Ltd. is looking to sell shares valued at up to Rs 50 crore. The book-running lead managers of the issue are ICICI Securities Ltd., Axis Capital Ltd., JM Financial Ltd. and SBI Capital Markets Ltd.

Investors can bid for a minimum of 51 equity shares and in multiples of 51 thereafter. The likely date for share listing is Dec. 26. Kfin Technologies Ltd. has been appointed as official registrar of the public offer.