Muthoot Finance successfully completes its Institutional Placement Program

Muthoot Finance, India’s largest gold loan company and 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%. Under the IPP, the offer was made only to Qualified Institutional Buyers. The company 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 stood at 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. The issue opened and closed on April 25, 2014. The issue 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 crore. The company decided to allot shares at the upper end of the price band at Rs 165 per share. Muthoot Finance is the largest gold financing company in India in terms of loan portfolio. The company is a Systemically Important Non-deposit taking NBFC headquartered in the southern Indian state of Kerala and with its corporate office in New Delhi.