Muthoot Finance IPO subscribed 11.36 times

Gets bids for 49.73 crore shares

The initial public offer (IPO) of Muthoot Finance was subscribed 11.36 times by 16:00 IST on the third day of the issue today, 20 April 2011. The IPO received bids for 49.73 crore shares compared with 4.37 crore shares on offer.

Muthoot Finance is raising up to Rs 901.25 crore from the IPO, which opened for bidding on Monday, 18 April 2011. The issue closes on 21 April 2011. The company has set Rs 160-175 per share price band for the IPO.

Muthoot Finance, India's largest gold financing company in terms of loan portfolio, on Friday, 15 April 2011, finalized the allocation of 77.25 lakh shares at a price of Rs 170 per share to a clutch of anchor investors for Rs 131.32 crore. The anchor investors include Citigroup Global Markets Mauritius, Abu Dhabi Investment Authority - Ganges, Goldman Sachs India Fund, Baring India Private Equity Fund III Listed Investment, Credit Suisee (Singapore), Birla Sun Life Trustee Company, The Royal Bank of Scotland PLC as a trustee of the Jupiter India Fund, Jupiter South Asia Investment Company, Swiss Finance Corporation (Mauritius), Ashoka Flowering Tree Mauritius and Equanum International.

Muthoot Finance provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements. The company intends to utilize proceeds of the IPO to augment its capital base to meet its future capital requirements to provide for funding of loans to its customers and general corporate purposes.

Post issue Muthoot Finance promoters holding will fall to 80.12% from 93%. Currently the balance 7% is owned by Matrix Partners, Barings Private Equity India, Kotak Private Equity and the Welcome Trust.