Muthoot Microfin, a part of the Muthoot Pappachan Group (Blue Muthoot), which ventured into the stock market on the day after Christmas, envisages extensive projects for development.
The IPO of Muthoot Microfin, which was launched on December 18, witnessed a big interest from investors and was subscribed by 11.52 times. While the issue price was Rs 291, the expectations were not fully met during the IPO listing, when the price fell by 5 per cent to Rs 278. n Wednesday it closed at Rs 263.90 on NSE, a drop of nearly 1 per cent from the previous close of Rs 266.15.. Despite this fluctuation, Muthoot Microfin promises big plans for expansion.
The main focus of the company is to serve more customers by expanding its branches. At present, the firm has presence in 18 states with 1,340 branches. The plan is to utilise the latest technology to offer faster and better customer service. IT would also enable the company to increase productivity and control expenses.
“Muthoot Microfin registered a half-yearly profit of Rs 205 crore in September. The current yield from investments is 22.94 per cent and the net interest is nearly 12.34 per cent,” said Muthoot Micorfin CEO Sadaf Sayeed.
With the Reserve Bank of India is expected to slash rates in the near future, the margin of interest rates would be wider, he added. The benefits in this regard would be passed on to customers, Sayeed said.
A leading player in the microfinance sector in Kerala and Tamil Nadu, the company has a wide presence in other southern states. With a customer base of 32 lakh, the company manages assets worth Rs 10,800 crore and the income is Rs 1,428 crore. A major share of the customers is located in rural areas and most of them are women, the company claimed.
Muthoot Fincorp Ltd is the other Muthoot Pappachan Group, established over 50 years ago, company that was listed on the stock exchange.
