Muthoot Microfin Limited

Muthoot Microfin Limited -IPO DETAILS 

Company Overview 

Established in April 1992, Muthoot Microfin Limited, a subsidiary of the Muthoot Pappachan Group, specializes in providing micro-loans to female customers, with a particular emphasis on rural areas in India. The company offers various financial solutions, including group loans for livelihood enhancement, such as income-generating loans and Pragathi loans (which provide working capital for existing customers). Additionally, they provide individual loans, life betterment solutions encompassing loans for cell phones, solar lights, and household appliances, health and hygiene loans for improving sanitary facilities, as well as secured loans in the form of gold loans and Muthoot Small & Growing Business ("MSGB") loans. 

In 2021, the company introduced the "Mahila Mitra" mobile application, facilitating digital payment methods such as QR codes, websites, SMS-based links, and voice-based payment options. As of March 31, 2023, the Mahila Mitra application has been downloaded by 1.18 million customers, with 1.70 million customers engaging in digital transactions. The company boasts 2.77 million active customers, operates 1,172 branches across 321 districts in 18 states and union territories in India, and employs a workforce of 10,227 

Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. To facilitate our continuous business operations. 

2. The company intends to utilize the Net Proceeds for funded activities. This includes leveraging the benefits derived from listing Equity Shares on Stock Exchanges, with the overarching goals of enhancing our brand image and establishing a presence in the public market in India. 

Company Financials 

Key Performance Indicator 

Pros 

1. By December 2022, the company has established a nationwide presence in India and has secured its position as the fourth-largest Non-Banking Financial Company-Microfinance Institution (NBFC-MFI) in the country based on its gross loan portfolio. 

2. The company's success is attributed to its customer-centric approach and an extensive rural distribution network, allowing it to provide a diverse range of financial products in areas where accessibility is limited. 

3. Benefiting from its association with the Muthoot Pappachan Group, the company enjoys brand recognition and significant advantages in terms of marketing and operations. 

4. the company's performance in its loan portfolio surpasses that of the overall Indian microfinance industry. From March 2021 to December 2022, it consistently maintains a lower proportion of loans at each month-on-book stage compared to its industry peers. 

Cons 

1. The company faces exposure to interest rate risk, and fluctuations in interest rates pose a potential threat to its net interest income. 

2. ith a substantial portion of its revenue originating from South India, significant developments in these regions could adversely affect the company's business operations. 

3. Additionally, any disruptions in the company's funding sources or an increase in funding costs may have a negative impact on its overall business. 

4. Furthermore, the company is vulnerable to changes in its credit ratings. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”