Stocks

Muthoot Finance eyes Rs 1,400 cr via IPO

Our Bureau Mumbai | Updated on March 15, 2011

Kerala-based Muthoot Finance plans to raise Rs 1,400 crore through an initial public offering.

Depending on the market conditions the issue is expected to be launched by end of this month.

SEBI had passed its final observation on the issue in December. According to the prospectus filed with SEBI, the company will divest 13.85 per cent by issuing 5.15 crore shares through the IPO.

Crisil Equities has assigned four on five (4/5) grade for the proposed initial public offering IPO of Muthoot Finance.

The grade indicates that the fundamentals of the IPO are above average relative to other listed equity securities in India.

Muthoot Finance is a non-deposit taking non-banking finance company engaged primarily in the business of lending to individuals against used household gold jewellery.

The IPO proceeds will be utilised to augment the company's capital base for meeting capital requirements, for funding of loans and for general corporate purposes.

ICICI Securities, Kotak Mahindra Capital and HDFC Bank are the book running lead managers to the issue.

Published on March 15, 2011

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