Secondary Issues
Muthoot Microfin looks to raise Rs.500-Cr via QIP; scouts for acquisitions
Business Line Muthoot Microfin
Kochi-based Muthoot Microfin plans to raise INR 500 crore through a qualified institutional placement (QIP) of equity shares. Additionally, the company is evaluating the potential acquisition of non-banking financial companies (NBFCs) that specialise in micro-loan against property (LAP) to expand its non-Joint Liability Group (non-JLG) loan portfolio.Founded in 2010, Muthoot Microfin is assessing regional players that operate within the INR 5 lakh to INR 15 lakh ticket size category for micro LAP. The firm expects that a potential acquisition would require an outlay of about INR 200 crore and would add about INR 500 crore to its existing portfolio.The company aims to achieve a loan mix of 60:40 for JLG to non-JLG lending by 2028. This strategy is supported by its recent financial performance, which included a net profit of INR 81.3 crore in the first quarter, compared to INR 6.77 crore in the same period of the previous year. The firm intends to diversify its assets under management (AUM) by introducing consumer durable loans to cater to festive season demand.
Between Dec 2016 and Aug 2024, Muthoot Microfin had attracted about USD 124 M from Creation Investments, Greater Pacific Capital, responsAbility, and Triple Jump.
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