The Muthoot Finance Company from Kerala which is a family run business, has come out with its IPO or Initial Public Offering or IPO which has opened today.
In this article, we will look at the Review, Analysis and Details of the Muthoot Finance IPO and try to do the Review and analysis of Muthoot Finance IPO.
Muthoot Finance IPO: Review Analysis & Details
Some basic details first about the Muthoot Finance IPO, which are available as of now:
- The size of Muthoot Finance IPO is around 900 Crore Rs. INR
- The compnay is in the business of Gold Loan lending, i.e. they provide loans to individuals against gold as repo security
- It is a NBFC i.e. a Non Banking Financial Company
What are the primary reasons for Muthoot Finance to come out with the Muthoot Finance IPO?
The main reason for any company to come out with an IPO is to collect money from the public through the standard process of listing on stock exchanges.
The Muthoot Finance IPO is expected to collect around 825 to 900 Crore Rs.
The proceeds of this IPO will be used for providing more loans to gold owners and other general corporate expenses.
What is the issue size of the Muthoot Finance IPO?
Around 825 to 900 Crore Rs is the size of the Muthoot Finance IPO.
What is the price band of Muthoot Finance IPO?
The price band for Muthoot Finance IPO 160 to 175 Rs. per share.
Other Current IPO's: Future Ventures IPO
Innoventive Industries IPO
How many shares will be sold in the Muthoot Finance IPO?
The total no. of shares to be sold through this IPO is 5.15 Crore shares.
What are the IPO dates for Muthoot Finance IPO
The IPO dates for Muthoot Finance IPO are from 18th April 2011 to 21 April 2011
How will the capital raised by Muthoot Finance IPO be used?
The capital raised through this IPO will be used for providing more loans to gold owners and other general corporate expenses like capital requirements in future.
Any ratings given to Muthoot Finance IPO?
It has receied a 4 out of 5 rating from Crisil & ICRA.
What are the analysts recommendations and business results for Muthoot Finance IPO?
There are a few good points about the Muthoot Finance Company:
- There is a 7% stake held in the company by Private investors like Baring India, Matrix Partners India, Kotak India PE, Welcome Trust UK and Kotak Investment Advisors. That shows the good business performance and the confidence that is there in this company.
- The company has around 20% market share of the gold loan market which is quite impressive. The total gold loan market of India is estimated to be around 66 thousand crore Rs.
- A pan India presence in 25 different states with more than 2600 branches adds to company's strengths
- A healthy outstanding advance number reported to be around 13,000 Crore Rs. and a gold depopsit of around 97 tonnes
The concerns are over high volatility of Gold Prices, which we've seen in the recent past and the tighter regulations which may come from RBI for such NBFC's in gold loan business. Overall, the market experts are advising the investors to apply for this Muthoot Finance IPO.
ICICI Securities, HDFC Bank and Kotak Mahindra Capital are the BRLMs - Book Running Lead Managers to the Muthoot Finance IPO.
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