Muthoot Finance completes institutional placement

MFL had done an IPO of its equity shares in April 2011 and listed shares on stock exchanges in May

Muthoot Finance Limited (MFL) has successfully concluded its Institutional Placement Program (IPP) as per the Sebi guidelines to comply with the regulatory norms for minimum public shareholding of 25%. Under the IPP, the offer was made only to Qualified Institutional Buyers.

MFL had done an Initial Public Offering of itsequity shares in April 2011 and listed the shares on Stock Exchanges in May. The public shareholding as on that date was 19.88% and the Sebi guidelines stipulated that this should be increased to 25% within 3 years from the date of listing. Under IPP, the Company offered fresh 25,351,062 equity shares of Rs.10 each.

Issue opened and closed on April 25th. The issue was made under the book buildingroute with a price band of Rs 155 to Rs 165 per equity share. The Issue wasoversubscribed 1.80 times at the upper end of the price band for a total bidamount of Rs 754.64 crore.

The Company decided to allot shares at the upper endof the price band at Rs 165 per share, said M G George Muthoot, Chairman ofthe company. George Alexander Muthoot, Managing Director, said that With theregulatory environment on the sector turning positive, we could see activeinterest from domestic and international investors on the Company.

The Companycould attract investments at a tight discount of 2.40% to the opening market price of Rs 169 pershare as on the date of opening of the issue. It shows increased level ofconfidence in the Company after successfully going through the severeregulatory changes in the last two years."