Muthoot Finance IPO : Plans to raise Rs 1400 crore

by khalid on 10/03/2011 · 2 comments

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.

Stay tuned to BelltheBull Blog for more news on Muthoot Finance IPO !

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{ 2 comments… read them below or add one }

Jishu Deb March 20, 2011

I Want to purchase the proposed IPO of Muthoot Finance Limited, I have a Dmet account which is maintained by the SMC. Kindly suggest how can I invest in to the proposed IPO of Muthoot Finance Limited please.

Reply

khalid March 20, 2011

Hi Jishu,

Just let them announce the opening date and then apply through the banks mentioned in the prospectus.

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