Gold financing company Muthoot Finance Limited is planning to raise Rs 1400 crore through an initial public offering (IPO) in the last week of this month. 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.
As per the draft prospectus (DRHP) filed with SEBI, the company will issue 51. lakh shares through the IPO, which will see it divest a 13.85% stake.
Rating agency CRISIL had assigned a grade of `4 on 5` to the proposed IPO, indicating Above Average fundamentals.
Investment banking sources said the company will come out with the share sale offer in the last week of March and aims to raise somewhere between Rs 1200-1400 crore. Earlier it was said that the company will raise around Rs 800 crore through this IPO.
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