New Delhi: Shares of Muthoot Microfin Ltd, the microfinance subsidiary of Muthoot Pappachan group, made its market debut on Tuesday.
The Initial Public Offering (IPO) of Muthoot Microfin received 11.52 times the subscription on the closing day of bidding on Wednesday. The Rs 960 crore IPO had a fresh issue of up to Rs 760 crore and an offer for sale of Rs 200 crore. The price range for the offer was Rs 277-291 a share.
Muthoot Microfin is promoted by Muthoot Fincorp, the third-largest gold loan player and the flagship firm of the Muthoot Pappachan group. The company plans to use proceeds from the fresh issue for augmenting its capital base and meeting future capital requirements.
The stock made its debut at Rs 278, registering a decline of 4.46 per cent from the issue price on the BSE. During the day, it fell 8.83 per cent to Rs 265.30, before settling at Rs 266.20, lower by 8.52 per cent.
At the NSE, shares of the company are listed at Rs 275.30 apiece, a drop of 5.39 per cent. The stock ended at Rs 265.95, a fall of 8.60 per cent. The company’s market valuation stood at Rs 4,538.50 crore.
(With PTI inputs)