Indian gold loan lender Muthoot FinCorp files for USD314m IPO

Business Recorder reported that Muthoot FinCorp, an Indian non-banking lender, has lodged a draft prospectus for a Mumbai listing that aims to raise 30 billion Indian rupees, equal to USD314.59 million. The document is dated Wednesday. The offer will consist only of newly issued shares.

A pre-IPO placement of up to 6 billion rupees is also possible, and it would reduce the size of the fresh issue. Half of the net issue at most is reserved for qualified institutional buyers, while high-net-worth individuals get at least 15 per cent and retail investors at least 35 per cent.

Proceeds are earmarked for bolstering the Tier I capital base to support future lending, along with growth in the business and digital platforms, with a smaller portion set aside for issue costs. Muthoot FinCorp, the main financial services arm of the Muthoot Pappachan Group, mainly offers gold loans and also lends for business, housing, supply chain and property needs. The company has over 3,800 branches nationwide, and its net profit more than tripled while revenue from operations rose 31.8 per cent in the year to March 31.