With more than 10 companies gearing up for IPOs in December and January, the stock market is abuzz with opportunities. As per the latest IPO News, in the midst of this financial flurry, Muthoot Microfin and Suraj Estate Developers are both set to debut their public offerings on December 18th, 2023. Let us explore the key details of both.
Muthoot Microfin’s IPO Share Price
Muthoot Microfin’s IPO size is ₹ 960 crores. It is structured with a fresh release of shares valued at ₹760 crore by the microfinance institution. Additionally, there is an offer-for-sale (OFS) of ₹200 crore worth of shares by existing shareholders.
Promoters and Investors in the OFS
In the offer-for-sale (OFS) segment, key promoters, including Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George, are collectively divesting ₹150 crore worth of shares. Furthermore, investor Greater Pacific Capital WIV will be divesting ₹50 crore worth of shares in the OFS.
Ownership Structure and Stakeholders
Company promoters, represented by Muthoot Microfin, currently maintain a 69.08 percent ownership stake. The remaining 28.53 percent of ownership is distributed among public shareholders. Notable shareholders include Greater Pacific Capital WIV, holding a 19.06 percent stake, and investment management firm Creation Investments India LLC, with a 9.01 percent stake.
Employee Benefit and Discounted Shares
Muthoot Microfin has allocated shares worth ₹10 crore for its employees, providing them with the opportunity to acquire these shares at a discounted rate compared to the final issue price.
Utilisation of IPO Proceeds and Capital Base Strengthening
The net issue proceeds from the IPO will primarily be allocated to bolstering Muthoot Microfin’s capital base, ensuring sufficient resources to meet future capital demands.
Regulatory Compliance and CRAR
As an NBFC-MFI, Muthoot Microfin is mandated to maintain a minimum Capital to Risk-Weighted Assets Ratio (CRAR) of 15 percent, covering both Tier I and Tier II capital. The CRAR as of March FY23 stood at 21.87 percent (₹1,363.8 crores), and as of September FY24, it was at 20.46 percent (₹1,540.3 crores).
Muthoot Microfin IPO Allotment and Listing Schedule
Muthoot Microfin will finalise the basis of IPO share allotment by December 21, with the allocation of equity shares to eligible investors’ demat accounts scheduled for December 22. Following the IPO schedule, the company is set to list its equity shares on both the BSE and NSE on December 26.
Suraj Estate Developers IPO Details
Suraj Estate Developers, a Mumbai-based real estate developer, is set to launch its Rs 400-crore initial public offering (IPO) on December 18, with a price band set at Rs 340-360 per share.
Institutional investors have the opportunity to join the anchor book until December 15, with the public issue scheduled to conclude on December 20.
Exclusive Fresh Issue in the IPO Structure
Suraj Estate Developers’ IPO size consists exclusively of a fresh issue component by the company. Consequently, the entire net issue proceeds, excluding IPO expenses, will directly contribute to the company’s coffers.
Repayment of Debts and Fund Allocation
Suraj Estate Developers plans to utilise the funds raised from the IPO strategically. An allocation of Rs 285 crore is earmarked for repaying existing debts, which currently stand at Rs 285 crore. The company’s total outstanding consolidated debt, as of September 2023, reached Rs 568.83 crore.
Land Acquisition and General Corporate Purposes
Further, Rs 35 crore from the IPO proceeds will be allocated for the acquisition of land or land development rights in the Mumbai Metropolitan Region. The remaining funds will be set aside for general corporate purposes.
Subscription Details and Institutional Participation
The IPO subscription window opens on December 18, with institutional investors having the opportunity to participate in the anchor book on December 15. The public issue concludes on December 20.
Investor Categories and Lot Size Information
Suraj Estate Developers’ IPO size includes a reservation of 50% of its issue size for qualified institutional investors, 15% for high net-worth individuals, and the remaining 35% for retail investors.
IPO Lot Size and Retail Investor Limits
Bids can be made for a minimum of 41 equity shares, with multiples of 41 shares thereafter. Retail investors are eligible to apply for a minimum of 41 shares worth Rs 14,760. The maximum investment for retail investors is capped at Rs 1,91,880 for 533 shares, adhering to the investment limit of Rs 2 lakh.
Conclusion
The coming months promise not just a flurry of IPOs but a plethora of opportunities for those keen on exploring the dynamic landscape of the stock market. Stay tuned for more IPO news.
Source- livemint.com
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.