Keral based gold financing company Muthoot Finance Limited is entering into primary market with an Initial Public Offer (IPO) of 51,50,000 Equity Shares of Rs 10 each. The IPO is opening on 18th Apr 2011 and the shares will be available for subscription up to 21st Apr 2011. The premium of the issue will be decided through a 100% Book Building Process. The price band for the issue has not been fixed yet. The company is likely to raise around Rs 901.25 Crore through the issue at the upper level of price band. The issue will constitute 13.85% of the fully diluted post issue paid-up equity share capital of the company. Kerala-based firm Muthoot Finance is the largest gold financing company in India in terms of loan. The company claims to disburse Gold Loan in 5 minutes.
The proceeds of the IPO are proposed to be utilized to augment the company`s capital base for meeting future capital requirements, for funding of loans and for general corporate purposes.
Rating agency CRISIL had assigned a grade of `4 on 5` to the proposed IPO, indicating Above Average fundamentals.
The equity shares offered through the IPO are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Issue Open : 18th Apr 2011 – 21st Apr 2011
Issue Type : 100% Book Built Issue IPO
Issue Size : 51,50,000 Equity Shares of Rs 10 each
Issue Size : Rs 824.00 – Rs 901.25 Crore (Depending on the final pricing)
Face Value : Rs 10 Per Equity Share
Issue Price : Rs 165 – Rs. 175 Per Equity Share
Minimum Bid Quantity : 40 Shares (Rs. 7000 with 1 Lot) @ upper level of price band
Maximum Bid Quantity : 1120 Shares (Rs. 196000 with 28 Lots ) @ upper level of price band
Listing At : BSE, NSE
The Book Running Lead Managers (BRLM) to the offer are HDFC Bank Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited.
Registrar of the Issue : Link Intime India Private Limited Mumbai.
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