A new listing today – Muthoot Microfin and after a really long time, we had a listing which was at a discount to the IPO price. As against the IPO price of Rs.291, the stock got listed on the BSE at Rs.278 and on the NSE at Rs.275.30.

The IPO had received a mediocre kind of response; getting overall subscribed 11.52 times, with HNIs portion at 13.2 times, QIBs at 17.47 times and Retail investors at 7.61 times.

Part of Muthoot Pappachan Group (different from listed Muthoot Finance), Muthoot Microfin is Kerala’s largest micro loan provider and enjoys 16% market share in Tamil Nadu. With assets under management (AUM) of Rs. 10,867 cr, it has 32 lakh customers, served through 1,340 branches. Home-state Kerala and Tamil Nadu account for 17% and 26% of AUM respectively, with non-South being a respectable 48% of AUM.

In our IPO Analysis, we had concluded - We recommend subscribing to the IPO given Muthoot Microfin’s AUM growth, healthy asset quality and attractive issue pricing.