Muthoot Finance mulls to raise Rs 800 cr via IPO; files DRHP

Muthoot Finance has filed the draft prospectus with market regulator the Securities and Exchange Board of India (Sebi) to raise about Rs 800 crore through an initial public offer (IPO) for funding loans.

The Kerala-based firm, which claims to be the largest gold financing company in India in terms of loan portfolio, will issue 5.15 crore shares through the IPO that will be see a divestment of 13.85 per cent stake, as per draft red herring prospectus.

While, the company has not mentioned how much it will be raising through the public float, investment banking sources told PTI that the firm is looking to raise about Rs 800 crore.

The IPO proceeds will be utilised to augment capital base for meeting future capital requirements, for funding of loans and for general corporate purposes, as per the draft prospectus.

The company provides personal and business loans secured by gold jewellery (or gold loans).

Muthoot Finance may consider the participation by anchor investors, it said in the prospectus.

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

The draft prospectus was filed with the Sebi on September 30.

Shares offered through the IPO are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange. The pricing of IPO will be based on book building method.