Muthoot Microfin's stock market debut on December 26 was less than stellar, with shares opening at ₹275.30 on the National Stock Exchange (NSE), a 5.39% discount to the issue price of ₹291.00 per share. The company, engaged in microfinance, had recently concluded its Initial Public Offering (IPO), raising ₹960 crore.
The IPO, which ran from December 18 to December 20, comprised a fresh issue of 2.61 crore equity shares (₹760 crore) and an offer for sale (OFS) of 69 lakh shares (₹200 crore). Despite a decent response from investors, with an overall subscription of 12.30 times, the market debut fell short of expectations.
The price band for Muthoot Microfin's IPO was set at ₹277 to ₹291 per share, with a lot size of 51 shares. Notably, the retail category saw 8 times subscription, while Qualified Institutional Buyers (QIB) oversubscribed by 18.35 times, and Non-Institutional Investors (NII) by 13.87 times.
ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets served as the book running lead managers for the IPO, with Kfin Technologies as the IPO registrar. The weak market debut underscores the challenges faced by companies in the dynamic stock market environment.
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