Muthoot Pappachan Group plans IPO for MFI arm
Mumbai, Muthoot NSE-1.10% Microfin, the microfinance arm of the Muthoot Pappachan Group, is planning to tap the capital requests with an original share trade offer of Rs1,500-1,800 crore by the last quarter of 2023. Delhi- grounded Muthoot Microfin is promoted by Muthoot Fincorp, which is the third- largest gold loan player and the flagship establishment of Muthoot Pappachan Group.
This is the third largest MFI with a customer base of 2.2 million across 18 countries and served by its 1,008 branches. As of September 2022, the company had an active loan book of Rs7,500 crore. We’re planning a Rs1,500 IPO by the fourth quarter of 2023 and anticipated to file the IPO papers with the Sebi by May 2023, Thomas Muthoot, managing director of Muthoot Microfin, told PTI on Wednesday from Kochi.
At Rs1,500-1,800 crore, our IPO will be the largest from the MFI member, Muthoot said, adding that Muthoot Microfin will also be the first MFI to cross the Rs10,000- crore AUM mark by the time of table. Muthoot Fincorp and the Muthoot family enjoy a 71 per cent stake in Muthoot Microfin. either, London- grounded private equity establishment GPC holds 16.6 per cent and Chicago- grounded private equity fund Creation owns 9.3 per cent, he added.
The company is planning to raise Rs1,200 crore of primary capital, and there can be a small offer for trade by the external investors, but none of them has indicated that they want to exit the company, Sadaf Sayeed, the principal superintendent of Muthoot Microfin, told PTI from New Delhi. still, the final size of the OFS would be decided near to the issue date and so is the valuation. But I can say that we’re likely to be trading at Rs7,000-7,500 crore post-listing, he added. On the DRHP form, Sayeed said they anticipate to seek Sebi blessing by May-end, once the fiscal books are closed for FY23.
The company has been growing well and the loan book crossed the Rs7,500- crore AUM mark in September, from which it earned profit of Rs614.9 crore in H1 FY23, up 66 per cent from Rs369.4 crore in H1 FY22 and its net income rose from Rs1.23 crore in H1 FY22 to Rs27.3 crore in H1 FY23, he noted. The operation said the company is completely recovered from the epidemic dislocations and has ago been showing sustainable and profitable operations.
We’re on a growth path now, registering over 45 per cent compounded growth rate, and our AUM has formerly crossed Rs7,500 crore, over from Rs6,300 in March 2022, Sayeed said. He also said the asset quality has also bettered significantly, and the post-pandemic loans are contributing just 0.10 per cent of the NPAs, and as of September, 87 per cent of the loan book represents post-pandemic fabrication. As of September, overall asset quality has bettered, with gross NPAs halving to 3.3 per cent from 6.3 per cent and net NPAs falling to 0.88 per cent from 1.5 per cent in March 2022, he added. Muthoot said the protagonist family will continue to hold further than 50 per cent of the company post-issue..
About Muthoot Pappachan Group
The Muthoot Pappachan Group, with a reputation that has been shaped over decades with high quality practices, total customer satisfaction and steady growth in the field of business, is a legacy built on God-given values of trust, truth, transparency and tradition and has become one of the top business houses today by the grace of God.
Muthoot takes its name from its Family, which is a branch of a traditional Orthodox Christian family, based in Kozhencherry, a small town in the erstwhile primary state of Travancore. (Kerala). In the year 1887, Muthoot Ninan Mathai (Patron Founder of the group), started in a humble way as a retail and whole-sale trader of grains at Kozhencherry. These wholesale goods were mainly supplied to the large Estates owned by British Companies. Later, understanding the unmet saving needs of the estates workers, Mr. Ninan Mathai, started the Chit Funds business on a philanthropic motive, as an avenue for saving. Initially, it was started solely for the workers, but later was floated outside the estate. The business grew slowly but steadily along with its share of ups and downs.
Functioning out of a single office in Kozhencherry, Muthoot Ninan Mathai entered the gold loan business in the 1950’s. He soon went on to become the largest player in Chits & Gold Loans. Various people across Kerala came to Kozhencherry for gold loan & chits. The Late Muthoot Ninan Mathai had four sons, Ninan Mathew, M. George, M. Mathew and Mathew M. Thomas (Muthoot Pappachan) who were involved in the business from their childhood and later took over the family business.
Over the years, the Muthoot Pappachan Group has grown to become a significant entity in the Indian business landscape. “A journey of a thousand miles begins with a single step”. True to this adage, the group which planted its roots in retail trading, later diversified into various sectors including Financial Services, Hospitality, Automotive, Realty, IT Services, Healthcare, Precious Metals, Global Services and Alternate Energy. Currently MPG has over 20,000 employees, serving over a million customers through its over 3500 branches across the country. MPG’s customer-centric approach and innovation in terms of new products that cater to changing customer needs, have helped in winning the loyalty of innumerable customers, as well as in attracting new ones. Adopting the latest technology and new ways to serve customers, without compromising on basic principles and ethics that it has been following since its inception, is what forms the backbone of MPG.
Muthoot Pappachan Group has grown to encompass unimaginable proportions. Armed with a commitment to society, the group set up the Muthoot Pappachan Foundation (MPF), a Public Charitable Trust – the CSR arm of MPG that has touched thousands of lives through its diverse programs.