Muthoot Microfin, Suraj Estate IPOs to open on Dec 18; check price band, offer details

In the ongoing IPO season, two more companies have joined the queue to raise funds from the Indian market. Muthoot Microfin and Suraj Estate Developers will launch their respective public issues next week.

The Muthoot Microfin IPO price band has been fixed at ₹277 to ₹291 per equity share at the face value of ₹10. The issue will open for subscription on December 18, 2023, and will close on December 20, 2023. The public issue will open for anchor investors on December 15, 2023.

The offer includes equity shares of face value of ₹10 each aggregating up to ₹960 crore, including fresh issue worth ₹760 crore and offer for sale worth ₹200 crore.

Up to 50% of the issue will be for qualified institutional buyers; 15% for non-institutional investors; and 35% of the offer for retail investors. The employees bidding in the reserved portion will get a discount of ₹14 apiece. The minimum lot size for the bidding is 51 shares and in multiples thereafter.

Muthoot Microfin's competitors include Equitas Small Finance Bank Ltd, Ujjivan Small Finance Bank, and CreditAccess Grameen.

Muthoot Microfin is part of the Muthoot Pappachan Group and is primarily involved in providing finance to low-income group customers. It provides micro-loans to women customers (primarily for income generation purposes), with a focus on rural regions of India. It also claims to be the fifth largest NBFC-MFI in India in terms of gross loan portfolio as of March 31, 2023, as per a CRISIL report. As of September 30, 2023, its gross loan portfolio amounted to ₹10,867 crore.

As of September 30, 2023, the company has 3.19 million active customers, and 12,297 employees across 1,340 branches in 339 districts in 18 states and UTs.

The Suraj Estate Developers IPO

The public issue will open on December 18, 2023, and close on Wednesday, December 20, 2023. The total issue size is equity shares of face value of ₹5 each aggregating up to ₹400 crore. The price band for the issue has been fixed at ₹340-₹360 per share of the face value of ₹5. The issue will be an option for subscription by anchor investors on December 15, 2023. The minimum lot size for the issue has been fixed at 41 and its multiples thereafter.

The issue is being made through a book-building process wherein not more than 50% of the issue will be allotted on a proportionate basis to qualified institutional buyers (“QIBs”). One-third of the anchor investor portion will be reserved for domestic mutual funds. Not less than 15% of the issue will be available for allocation to non-institutional bidders and not less than 35% of the issue will be available for allocation to retail individual bidders.

The net proceeds of the issue will be utilised for repayment or prepayment of the aggregate outstanding borrowings of the company and its subsidiaries; the acquisition of land or land development rights; and general corporate purposes.

The company's focus area of operation is the South-Central region in Mumbai, mainly consisting of Mahim, Matunga, Dadar, Prabhadevi and Parel, as its expertise lies in the redevelopment of tenanted properties.