Muthoot Finance Ltd
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Muthoot Finance Limited provides gold and fixed investment, money transfer, insurance, securities, foreign exchange, vehicle, and asset finance services, as well as loans against gold. It is primarily in the business of lending against used household gold jewellery to individuals. Muthoot Finance's operating history has evolved over a period of 70 years since Mr M George Muthoot (the father of the present promoters) founded a gold loan business in 1939 under the trading business (under partnership firm) established by his father, Ninan Mathai Muthoot, in 1887. In 2001, Muthoot Finance received the NBFC licence from the RBI.
Headquartered in Kerala, Muthoot Finance Ltd is a non-deposit taking 'systemically important' non-banking finance company (NBFC) incorporated in 1997. The company was founded in 1887 and is based in Ernakulam, India with a zonal office in Chennai. Muthoot Finance Limited is a subsidiary of Muthoot Capital Services Ltd. It has the largest branch network among gold loan providers in India with 1,605 branches and a strong presence in the under-served rural and semi-urban markets. In 2010, it received a fund infusion of Rs 2.5 bn from private equity players like Baring India Private Equity, Matrix Partners India, Kotak India Private Equity Fund and Wellcome Trust for a 6% stake in the company. In 2011, Wellcome Trust picked up an additional 1% stake from the promoters, taking the total stake of private equity investors to 7%.
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Objects of the issue:» To augment its capital base to meet future capital requirements to provide for funding of loans to its customers; and
» General corporate purposes. In addition, Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges.
Opposite Saritha Theatre Complex, 2nd Floor,
Banerji Road, Kochi 682 018, India
Phone:+91 484 239 4712
Fax:+91 484 239 6506
|Issue Price||Rs. 160 - Rs. 175|
|Isuue Type||100% Book Building Issue|
|Issue Size||51,500,000 Equity Shares of Rs. 10|
|Lot Size||» Minimum : 40 Shares|
» Maximum : 560 (1 Lac) , 1120 (2 Lac)
|Max Amount for Retail Investor||200000|
|Lead Manager||Icici Securities Limited, Kotak Mahindra Capital Company Limited, Hdfc Bank Limited|
|Registrar||Link Intime India Private Limited|
|Registrar Phone||+91 22 2596 0320|
|Application Multiple||40 and in multiples there off starting with atleast 40 shares|
|Cheque in Favour of||"Escrow Account - MFL Public Issue - R" For Retail Bidders|
|Listing Open||Rs. 180 / Rs. 196.60 (BSE/NSE)|
|Listing Close||Rs. 176.25 / Rs. 175.90 (BSE/NSE)|
|Listing High||Rs. 198 / Rs. 198.90 (BSE/NSE)|
|Listing Low||Rs. 161.50 / 161.40 (BSE/NSE)|
|Application Forms Download||Download|
|ASBA E-Form Download||Download|
|IPO Grading Download||Download|
Muthoot Finance Ltd Financial Details:
|Muthoot Finance: Financials|
|Particulars||0603 (12)||0703 (12)||0803 (12)||0903 (12)||1003 (12)||1011 (08)|
|Net Interest Income||78.01||123.69||178.14||296.47||603.72||706.79|
|Net Total Income||83.25||134.07||188.84||310.63||615.65||719.11|
|Profit before Tax||41.34||66.96||96.98||148.17||345.55||441.12|
|Provision for Tax||14.21||22.98||33.38||50.45||117.98||149.63|
|PAT as restated||26.89||43.86||63.07||97.87||228.52||291.48|
|* Annualised on post issue equity of Rs 371.71 crore, Face value Rs 10/- Figures in Rs crore|
During FY06 to FY10, Muthoot Finance's AUM increased at a CAGR of 74% driven by the rise in pledged gold and a spurt in gold prices.
It reported gross AUM of Rs 74 bn and PAT of Rs 2.3 bn on a total income of Rs 11 bn in FY10. The average yield on the AUMs during the same period was 19.9%. In FY10, while asset quality remained strong with gross NPA of only 0.46%, the capitalisation level was comfortable with a capital adequacy ratio of 14.8%.
|Gold Loan Portfolio outstanding of various financiers ( in Rs. crore)|
|Manappuram General Finance and Leasing Limited||480||1200||2560||75|
|Indian overseas bank||470||1180||2220||68|
|State Bank of Travancore||1140||1600||1930||19|
|Gold Loan Market Share (%)|
|Manappuram General Finance and Leasing Limited||3.7||4.9||6.8|
|Indian overseas bank||13.1||12.6||13.9|
|State Bank of Travancore||8.9||6.4||5.1|
|South Indian Bank||4.7||6.1||6.3|
|Total Gold Loans (in Rs. crore)||12910.0||24630.0||37640.0|
|Muthoot Finance: Key Operating Ratios||FY'08||FY'09||FY'10||8M FY'11|
|Return on Average Equity (%)||33.9||34.1||48.3||51.0|
|Yield on Average Advances (%)||19.5||21.7||19.9||18.9*|
|Gross NPA (%)||0.42||0.48||0.46||0.35|
|Net Worth ( in Rs. crore)||213.1||361.4||584.1||1131.4|
Muthoot Finance Ltd Grey Market Price - Premium - Rates
|Date||GM Premium||Kostak Rate|
|13-Apr-2011||----||Rs. 2600 - 2800 (2 Lac)|
|15-Apr-2011||Rs. 32 - 35||Rs. 2600 - 2800 (2 Lac)|
|18-Apr-2011||Rs. 26 - 27||Rs. 2800 - 3000 (2 Lac)|
|19-Apr-2011||Rs. 26 - 27||Rs. 2800 - 3000 (2 Lac)|
|20-Apr-2011||Rs. 21 - 22||Rs. 2600 - 2700 (2 Lac)|
|21-Apr-2011||Rs. 25 - 27||Rs. 2700 - 2800 (2 Lac)|
|26-Apr-2011||Rs. 26 - 27||----|
|27-Apr-2011||Rs. 25 - 27||----|
|28-Apr-2011||Rs. 26 - 27||----|
|29-Apr-2011||Rs. 28 - 30||----|
|02-May-2011||Rs. 28 - 29||----|
|03-May-2011||Rs. 27 - 29||----|
|04-May-2011||Rs. 32 - 33||----|
|05-May-2011||Rs. 32 - 33||----|
Muthoot Finance Ltd Subscription Details:
Muthoot Finance Ltd Basis of allotment:
Muthoot Finance Limited
Our Company was originally incorporated as a private limited company on March 14,1997 under the provisions of the Companies Act, 1956, with the name "The Muthoot Finance Private Limited". Subsequently, by a fresh certificate of incorporation dated May 16,2007, our name was changed to "Muthoot Finance Private Limited". Our Company was converted into a public limited company on November 18,2008 with the name "Muthoot Finance Limited" and received a fresh certificate of incorporation consequent to change in status on December 02,2008 from the Registrar of Companies, Kerala and Lakshadweep. For further details regarding changes to the name and registered office of our Company, see section titled "History and Certain Corporate Matters" on page 124 of the Prospectus.
Registered and Corporate Office: Muthoot Chambers, Opposite Saritha Theatre
Complex, 2nd Floor, Banerji Road, Kochi 682 018, India. Tel: (91 484) 239
4712; Fax: (91 484) 239 6506; Website: www.muthootfinance.com; Email:
Secretary and Compliance Officer: Rajesh A.; Tel: (91484) 353
PROMOTERS: M.G. GEORGE MUTHOOT, GEORGE THOMAS MUTHOOT, GEORGE JACOB MUTHOOT AND GEORGE ALEXANDER MUTHOOT
BASIS OF ALLOTMENT
PUBLIC ISSUE OF 51,500,000 EQUITY SHARES OF FACE VALUE RS. 10 EACH (THE "EQUITY SHARE") FOR CASH AT A PRICE OF RS. 175 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 165 PER EQUITY SHARE, AGGREGATING UP TO RS. 9,012.50 MILLION (THE "ISSUE") BY MUTHOOT FINANCE LIMITED (THE "COMPANY OR THE "ISSUER"). THE ISSUE WILL CONSTITUTE 13.85% OF THE FULLY DILUTED POST ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE ISSUE PRICE IS 17.5 TIMES THE FACE VALUE OF THE EQUITY SHARES.
The Company, in consultation with the BRLMs and CBRLM, has decided not to offer any
discount on the Issue Price to Retail Individual Bidders.
This Issue has been made for less than 25% of the post-Issue share capital pursuant
to Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended,
read with Regulations 26(1) and 41 (1) of the Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended
("SEBIICDR Regulations"). Further, this Issue has been made through the Book
Building Process wherein not more than 50% of the Issue was available for allocation to
Qualified Institutional Buyers ("QIBs") on a proportionate basis out of which 5%
of the QIB Portion (excluding the Anchor Investor Portion) was available for allocation on
a proportionate basis to Mutual Funds only, and the remainder was available for allocation
on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being
received at or above the Issue Price. Further, not less than 15% of the Issue was
available for allocation on a proportionate basis to Non-Institutional Bidders and not
less than 35% of the Issue was available for allocation on a proportionate basis to Retail
Individual Bidders, subject to valid Bids being received at or above the Issue Price. Our
Company has allocated 30% of the QIB Portion to the Anchor Investors on a discretionary
basis. One third of the Anchor Investor Portion was reserved for allocation to domestic
Mutual Funds, subject to valid bids being received from domestic Mutual Funds at or above
the Anchor Investor Issue Price. Bidders (except Anchor Investors) were allowed to
participate in this Issue through the ASBA process by providing the details of the bank
accounts in which the corresponding Bid Amounts had to be blocked by the SCSBs. For
further details, see section titled "Issue Procedure" on page 336 of the
The Issue received 265,018 applications for 1,078,895,200 equity shares resulting in 20.9494 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investor and Anchor Investors are as under: (Before technical rejections)
The Basis of Allocation was finalized on May 02, 2011 in consultation with the Bombay Stock Exchange Limited ("BSE"), the Designated Stock Exchange for the issue.
A. Allocation to Retail Individual Investors (After Technical Rejections)
B. Allocation to Non Institutional Investors (After Technical Rejections)
C. Allocation to QIBs
D. Allocation to Anchor Investors
The Board of Directors of the Company at it's Meeting held on May 03,2011, after taking
on record the basis of allocation of shares approved by the Designated Stock Exchange
viz., Bombay Stock Exchange Limited ("BSE"), Mumbai, of the Issue, has approved
the allotment of equity shares and has authorized the Corporate Action for the credit of
the shares to various successful applicants.
INVESTORS PLEASE NOTE
All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and place where the bid was submitted and payment details at the address given below:
Link Intime India Private Limited
C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), Mumbai 400 078
THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF MUTHOOT FINANCE LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus MUTHOOT FINANCE LIMITED has filed a Prospectus with Registrar of Companies, Kerala and Lakshadweep. The Prospectus is available on SEBI website at www.sebi.gov.in as well as on the websites of Book Running Lead Managers at www.idcisecurities.com and www.kmcc.co.in and the Co-Book Running Lead Manager at www.hdfcbank.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see section titled "Risk Factors" of the Prospectus. This material is not an offer or sale of securities. The Shares of the Company are not being registered under the US Securities Act of 1933 and may not be offered or sold in the U.S. unless registered under the Securities Act of 1933 or pursuant to an exemption from registration. There will be no public share offering in the U.S.
Forecasts for Muthoot Finance Ltd
|Subscription||» It can subscribe 10 to 16 times or more in the retail category. |
» QIB & HNI category may subscribe more than 20 times.
|Allotment||» Retail investor (Rs. 2 lac ) should get 130 to 135 shares. |
» Apart from Rs. 2 Lac Application, allotment will be lottery based.
|Listing||» It can list around Rs. 195 - 200. |
» It may touch intraday levels of Rs. 215 - 220.