Muthoot Finance completes Institutional Placement Programme

Muthoot Finance Ltd, India's largest gold loan company, the flagship company of Muthoot Group, 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 per cent.
Under the IPP, the offer was made only to Qualified Institutional Buyers.
MFL had done an Initial Public Offering of its equity shares in April 2011 and listed the shares on Stock Exchanges on May 6, 2011. The public shareholding as on that date was 19.88 per cent and SEBI Guidelines stipulated that this should be increased to 25 per cent within 3 years from the date of listing.

Under IPP, the company offered fresh 25,351,062 equity shares of Rs 10 each.The Issue opened and closed on Apr 25 and was made under the book building route with a price band of Rs 155 to Rs 165 per equity share.
The Issue was oversubscribed 1.80 times at the upper end of the price band for a total bid amount of Rs 754.64 crores. The Company decided to allot shares at the upper end of the price band at Rs.165 per share.
Speaking on the occasion, M G George Muthoot, chairman of Muthoot Finance Ltd said the company was committed and focused on the growth of the gold loan business and would take all necessary steps for the sector's healthy growth.

George Alexander Muthoot, Managing Director, Muthoot Finance Ltd said the Company had complied with the Sebi Minimum Public Shareholding stipulation well before the May 5 deadline. With the regulatory environment on the sector turning positive, Muthoot would see active interest from domestic and international investors on the company, he said.

"The company could attract investments at a tight discount of 2.40 per cent to the opening market price of Rs 169 per share as on the date of opening of the issue. It shows increased level of confidence in the company after successfully going through the severe regulatory changes in the last two years."

Well known and diversified set of QIBs participated in the Issue, which saw participation from investors, including FIIs, sovereign funds, life insurance companies and large mutual funds both domestic and international.
ICICI Securities Ltd, Kotak Mahindra Capital Company Limited and Espirito Santo Securities India Private Limited were the Book Running Lead Managers to the Issue.
AZB & Partners, Bangalore were the Indian Legal Counsel and DLA Piper Singapore Pte. Ltd., Singapore were the International Legal Counsel.