Upcoming IPO

Introduction

Drones are gaining importance in various sectors like defense, security, agriculture, and industrial inspection. They provide real-time information and reduce human intervention. Due to their efficiency and safety, there is a high demand for drones in the market.

IdeaForge is a leading drone manufacturer that produces advanced UAV solutions for various applications. Their products provide surveillance, reconnaissance, and data collection capabilities in diverse environments.

The initial public offering (IPO) was in late June 2023, at a range of ₹638 to ₹672. Investors responded enthusiastically to the public offering, leading to a substantial listing premium on BSE and NSE in July 2023. This article will examine how ideaForge has fared after its IPO.

Brief Overview of ideaForge

ideaForge Technology Limited (“ideaForge”) was incorporated on February 8, 2007. ideaForge is the pioneer and the pre-eminent market leader in the Indian unmanned aircraft systems (“UAS”) market, with a market share of approximately 50% in FY2022.

It had the largest operational deployment of indigenous UAVs across India, with an ideaForge-manufactured drone taking off every five minutes on average for surveillance and mapping as of FY2023.

Business Overview of ideaForge

The company has ranked 7th globally in the dual-use category (civil and defense) drone manufacturers as of December 2022. During the Q2FY24 ideaForge has bagged new orders worth INR 169 cr. In addition to being among the 1st few players in India to enter the UAV market, ideaForge also has the distinction of being the 1st company to indigenously develop and manufacture vertical take-off and landing (“VTOL”) UAVs in India in 2009.

The company possesses an in-house product development center that enables it to internally handle the design, development, engineering, and manufacturing of its UAVs, emphasizing performance, reliability, and autonomy.

Upon listing, ideaForge IPO was priced at ₹1,305 on BSE and ₹1,300 on NSE. The IPO successfully attracted investor attention across categories. From auctions to qualified consumer institutions (QIBs), it was subscribed 106.05 times ~ 94% due to strong interest rates. But what happened to the company after listing?

Financials of ideaForge

ideaForge Technology announced its Unaudited Financial Results for the Quarter ended 30th September 2023. The details are mentioned in the table below.

Key Financial Highlights table

Particulars (INR Mn)	Q2 FY24	Q2 FY23	Q1 FY24	H1 FY24	H1 FY23	H1 Y-o-Y
Revenues	237.3	402.8	970.7	1208.0	1395.5	-13.4%
Gross Profit	100.0	276.1	539.2	639.2	1,014.0	-37.0%
Gross Profit (%)	42.1%	68.6%	55.5%	52.9%	72.7%
EBITDA	70.4	98.2	320.3	390.8	659.5	-40.7%
EBITDA Margins (%)	29.7%	24.4%	33.0%	32.4%	47.3%
Profit After Tax	8.9	39.7	188.6	197.6	452.1	-56.3%
PAT Margins (%)	3.8%	9.8%	19.4%	16.4%	32.4%

During the Q2FY24 IdeaForge has bagged new orders worth INR 169 Cr.

• The revenue contribution from Civil business increased in Q2 FY24
• ideaForge drones completed a cumulative of 400K+ flights on the field
• Product demonstrations to the end customers, along with VARs in the United States
• Dun & Bradstreet Business Excellence Award 2023, and SIDM Champion Award for
  ‘Technology and Product Innovation’
• ConnectXchange initiative for MHA and MOD to increase product adoption

Revenue

The consolidated revenue from operations for the quarter of September 2023 stood at INR 23.7 crores, a decrease of 41% on a year-on-year basis. For H1 ’24, the revenue from operations was at INR 120.8 crores, decreasing 13.4% on a year-on-year basis. According to the results, the revenue contribution from civil business increased in Q2 FY24. During the quarter under review, the company earned 69% of its revenue from defence contracts, while the remaining 31% came from civil business.

EBITDA

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) stood at Rs 7 crore in Q2 FY24 against Rs 9.82 crore in Q2 FY23. For H1 ’24, EBITDA was 39.1 crores at 32.4%.

Net Profit

According to the latest corporate filing, ideaForge’s profit after tax (PAT) tanked more than 78% year-on-year (YoY) to INR 0.89 crores in Q2FY24 due to a sharp decline in revenue. The firm had posted a PAT of Rs 3.97 crore in the year-ago period.

Future Ahead for ideaForge

During one of the interviews, the CEO of ideaForge, Ankit Mehta stated this quarter was the performance phase for the company. Highlighting the importance of vertically integrated operations and indigenization efforts, highlighting their role in ensuring the quality and reliability of delivered mission-critical UAVs. The order book has improved on the back of new orders received in Q2 FY24

1-Year Performance

The stock was listed with a bumper opening at 1,305 on BSE and ₹1,300 on NSE. In January 2024, it is listed at around ₹758. ideaForge share price has failed to provide positive returns to investors since its listing despite a stellar debut in the market.

In conclusion, IdeaForge’s post-IPO journey has been a roller coaster marked by challenges and achievements. Investors and analysts are watching its performance closely as the company prepares to announce its Q3 results.  Despite recent challenges, ideaForge remains a strong contender in the drone market.

The probable factors that are affecting the ideaForge share price growth are as follows:

Valuation of Stock:
Some investors expressed concerns about the company’s shrinking order book when it listed for the IPO. The company explained that this was due to major contract delays in executing major contracts and completing contracts. Despite the improvements, analysts remain optimistic long-term, crediting the company’s strong products and brand recognition.

Many Offering:
ideaForge serves a varied customer base, with a primary focus on the defense and civil sectors. Drones are essential in defense, providing crucial surveillance capabilities and improving security and reconnaissance efforts. In the civil sector, these drones are utilized for surveillance and mapping, presenting innovative solutions across various industries.

Overcoming obstacles and securing self-reliance:
The drone sector is experiencing significant growth and rapid transformation, albeit at an early stage of development. Unlike many industries with occasional dramatic technological shifts, drone technology undergoes continuous evolution, demanding ongoing innovation. Remarkably, ideaForge distinguishes itself by reducing reliance on imported components. Recent apprehensions regarding potential restrictions on component supplies from China have spurred the company to ensure that imports account for only 15-20% of its revenues.

Know more about

Current IPO

Upcoming IPO

Listed IPO

International growth and financial prospects:
Although the company’s export revenue is currently in the single digits, ideaForge is committed to its global expansion strategy. The company has strategically broadened its presence through a network of reseller partners. Without immediate plans for capital investment, ideaForge is maximizing its existing capacity to manufacture quadcopters and switch drones efficiently. The focus is on enhancing the value of its product offerings through planned initiatives.

Read More: Grey Market Premium

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

Introduction

2024 starts with a bang as Jyoti CNC Automation Limited announces its Initial Public Offering (IPO), marking the beginning of the IPO season. This Indian-based company specializes in designing, producing, and distributing CNC machinery, making it a significant player in the manufacturing sector.

Jyoti CNC Automation IPO Details

IPO Date	January 9 to 11, 2024
Face Value	₹2 per share
Price Band	₹315 to ₹331 per share
Lot Size	45 Shares
Fresh Issue	up to ₹1,000.00 Cr
Employee Discount	Rs 15 per share

About Jyoti CNC Automation Limited

Jyoti CNC Automation Limited, headquartered in India, boasts an impressive product line. From multitasking machines to 3-axis and 5-axis CNC machining centers, turning centers, turning-milling centers, vertical machining centers (VMCs), and horizontal machining centers (HMCs), the company covers a broad spectrum in the CNC machinery domain.

The company has a diverse customer base which includes renowned names such as Indian Space Applications Center – ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, Uniparts India, Tata Advances System, Tata Sikorsky Aerospace, Bharat Forge, Shakti Pumps (India), Shreeram Aerospace & Defense, Rolex Rings, Harsha Engineers, Bosch Limited, HAWE Hydraulics, Festo India, Elgi Rubber, National Fittings, and many others.

Key Things to Know About Jyoti CNC Automation IPO

1. Lot Size: The lot size for the IPO is 45 equity shares, multiples of 45 after that. Allocation is 75% for qualified institutional buyers, 10% for retail investors, and 15% for non-institutional investors.
2. Anchor Investors: The allocation to anchor investors was scheduled for Monday, January 8.
3. IPO Details: The ₹1,000 crore Jyoti CNC IPO is a fresh issue with no offer for sale (OFS) component.
4. IPO Objectives: The company plans to utilize the net proceeds for working capital needs, loan repayments, and general corporate purposes.
5. Visibility and Brand Image: Jyoti CNC Automation anticipates benefits from listing equity shares, enhancing visibility, and creating a public market for its shares.
6. Lead Manager and Registrar: Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited are the book-running lead managers, with Link Intime India Private Ltd as the registrar.
7. IPO Reservation: The IPO reserves 75% for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and 10% for retail investors. A ₹15 per equity share discount is offered to eligible employees bidding in the employee reservation portion.
8. Listing Date and Allotment: The basis of allotment could be finalized on Friday, January 12, with refunds initiated on Monday, January 15. Shares will be credited on the same day; tentatively, the listing is expected on Tuesday, January 16.

Key Players and Promoters

The driving force behind Jyoti CNC Automation is its promoters – Vikramsinh Raghuvirsinh Rana, Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, and Jyoti International LLP. Their leadership has steered the company towards success, which is evident in its three manufacturing facilities in Rajkot, Gujarat (India), and Strasbourg, France.

Financial Performance and Growth

As of September 2023, Jyoti CNC Automation’s order book reached an impressive ₹3,315 crore, showcasing its substantial presence in various end-user industries. The fiscal years ending in March 2023 and March 2022 witnessed a remarkable 27% increase in revenue and a staggering 131.18% rise in profit after tax (PAT).

Peers

To understand Jyoti CNC Automation’s standing in the market, let’s compare it with some listed peers. According to the Red Herring Prospectus (RHP), the company competes with Elgi Equipments Ltd, Lakshmi Machine Works Ltd, Triveni Turbine Ltd, TD Power Systems Ltd, and Macpower CNC Machines Ltd.

Grey Market Premium and Estimated Listing Price

The Grey Market Premium (GMP) for Jyoti CNC IPO was +85, indicating a trading premium of ₹85. Considering the upper end of the IPO price band, analysts estimate the listing price could be ₹416 apiece, marking a substantial 25.68% increase.

Checking the company’s financials, diverse product range, and market indicators before investing in the Jyoti CNC Automation IPO is essential. Want to learn more? Check the DRHP here.

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*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

This week, there is a lot of excitement in the stock market, with 12 companies preparing to launch their initial public offerings (IPOs). These companies are hoping to raise a total of ₹4,600 crore from investors. In addition to these IPOs, be ready for the listing of 8 IPOs too.

The Securities and Exchange Board of India (SEBI) has more than 65 IPO documents filed, of which the regulatory body has approved 25. The target of ₹4,600 crore is an increase from the ₹4,000 crore raised in the week prior. 

Launching the IPOs this week

The IPOs by the mainline and SME entities are all set to offer an opportunity for retail investors to be a part of the growth story of these companies, which have shown strong financial performance and have a competitive edge in their respective domains. 

Company Name	Offer Price	Opening Date	Closing Date	Issue Size
Suraj Estate Developers	₹340 to ₹360	18-12-23	20-12-23	₹400Cr
Muthoot Microfinance	₹277 to ₹291	18-12-23	20-12-23	₹960Cr
Azad Engineering	₹499 to ₹524	20-12-23	22-12-23	₹740Cr
RBZ Jewellers	₹95 to ₹100	19-12-23	21-12-23	₹100Cr
Innova Captab	₹426 to ₹448	21-12-23	26-12-23	₹570Cr
Happy Forgings	₹808 to ₹850	19-12-23	21-12-23	₹1,008.59Cr
Credo Brands	₹266 to ₹280	19-12-23	21-12-23	₹549.78Cr
Supreme Power Equipment Ltd	₹61 to ₹65	21-12-23	26-12-23	₹46.67Cr
Indifra Ltd.	₹65	21-12-23	26-12-23	₹14.04Cr
Trident Techlabs Ltd	₹33 to ₹35	21-12-23	26-12-23	₹16.03Cr
Sameera Agro And Infra Limited	₹180	21-12-23	27-12-23	₹62.64Cr

IPOs Launching this week

1. Suraj Estate Developers 

Operating in the luxury and value luxury segments, the company (established in 1986) specializes in developing residential and commercial real estate in South-Central Mumbai. With a track record of completing 42 projects in the region, it has 13 ongoing projects and 16 upcoming ones.

Through the IPO, Suraj Estates Developers has the objective to utilize:  

1. Repayment or prepayment of existing debts
2. Acquisition of land or land development rights as part of the company’s expansion and growth strategy.
3. General corporate needs aligned with ongoing operations and future plans

IPO Date	December 18-20, 2023
Face Value	₹5 per share
Price Band	₹340 to ₹360
Lot Size	41 shares
Total Issue Size	₹400 crore from 1.11 crore shares
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE

2. Muthoot Microfinance

Founded in 2011 as a subsidiary of the prominent financial conglomerate, the Muthoot Group, Muthoot Microfin Ltd is a leading microfinance institution (MFI). Catering to more than 5.5 million female entrepreneurs spanning 23 states and 5 union territories, it provides financial solutions such as microloans, group loans, and individual loans. 

The company booked 95% on the first day of the IPO opening, 18 December. It proposes to use the net proceeds to:

1. Strengthen its capital base for future monetary requirements
2. Enhance its brand image among customers 
3. Create a public market in the country for equity shares.  

IPO Date	December 18-20, 2023
Face Value	₹10 per share
Price Band	₹277 to ₹291
Lot Size	51 shares
Total Issue Size	₹960 crore from 2.61 crore shares
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE

3. Azad Engineering

The Hyderabad, Telangana, company distributes its mission-critical products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas sectors. 

Its goals from the IPO capital involve utilizing the net proceeds for:

1. Funding capital expenditure 
2. General corporate requirements
3. Settling some debts through repayment or prepayment 

IPO Date	December 20-22
Face Value	₹2 per share
Price Band	₹499 to ₹524
Lot Size	28 shares
Total Issue Size	₹740 crore from 1.41 crore shares
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE

4. Motison Jewellers

The jewelry company launched the IPO on 18 December to raise ₹151.09 crore through an entirely fresh issue of more than 2.74 crore equity shares at a price band of ₹52 to ₹55 per share. The IPO saw a subscription of 33.14 times on day one.

5. RBZ Jewellers

Since its incorporation in 2008, the Indian gold jewelry manufacturer has specialized in crafting antique designs, including jadau, meena, and kundan work. Selling to wholesale and retail, its clientele comprises esteemed family jewelers across 19 states and 72 cities in India. The jewelers also operate a retail showroom, Harit Zaveri, a prominent player in Ahmedabad.

IPO Date	December 19-21
Face Value	₹10 per share
Price Band	₹95 to ₹100 per share
Lot Size	150 Shares
Total Issue Size	₹100 crore through 1 crore shares
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE

The gold jewelry manufacturer has already raised more than ₹21 crores from anchor investors. The IPO money raised will be used to fund the company’s working capital and general corporate purposes. 

6. Innova Captab 

Innova Captab Limited is a pharmaceutical company that offers contract development and manufacturing services to Indian pharmaceutical firms besides engaging with branded generics. After manufacturing and distributing 600+ generics in 2023, the company expanded its reach by exporting to 20 countries in FY2023.

The company plans to use the net proceeds from the fresh issue for:

1. Repayment or prepayment of outstanding company loans

2. Investment in its subsidiary, UML, for repayment or prepayment of loans

3. Meeting the working capital needs

4. General corporate objectives

IPO Date	December 21–26
Face Value	₹10 per share
Price Band	₹426 to ₹448 per share
Lot Size	33 Shares
Total Issue Size	₹570.00 Cr crore from 1.2 crore shares
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE

7. Happy Forgings

The manufacturer of forged components for the automotive and other industries was founded in July 1979 and is involved in the manufacturing, design, and rigorous testing of crankshafts, front axle carriers, steering knuckles, pinion shafts, etc. 

The company intends to use the net proceeds obtained from the IPO for:

1. Acquisition of equipment, plant, and machinery

2. Settling all or some of its debts

3. General corporate requirements.

IPO Date	December 19-21
Face Value	₹2 per share
Price Band	₹808 to ₹850 per share
Lot Size	17 Shares
Total Issue Size	₹1008.59 crore from 1.18 crore shares
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE

8. Credo Brands

Established in 1999, Credo Brands Marketing Limited introduced its flagship brand, “Mufti,” specializing in men’s casual clothing. From offering shirts, T-shirts, and trousers, the brand has expanded its product line to include sweatshirts, pants, chinos, jackets, etc. Operating 1,773 retail outlets across India, it has a presence in 582 cities.

With the IPO issues, the brand aims to 

1. Realize the advantages of listing Equity Shares on Stock Exchanges 
2. Amplify visibility and strengthen brand image
3. Facilitate liquidity for Shareholders
4. Establish a public market for equity shares in India

IPO Date	December 19-21
Face Value	₹2 per share
Price Band	₹266 to ₹280 per share
Lot Size	53 Shares
Total Issue Size	₹549.78 Cr crore from 1.96 crore shares
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE

9. Supreme Power Equipment Ltd

Established in 1994, Supreme Power Equipment Limited specializes in producing, enhancing, and refurbishing diverse transformer types and has a manufacturing facility spread over 17,876 square meters in Thiruvallur, Chennai. 

The objectives of the issue include:

1. Addressing capital expenditure needs
2. Covering the company’s working capital requirements
3. Attending to general corporate purposes
4. Covering issue-related expenses

IPO Date	December 21–26
Face Value	₹10 per share
Price Band	₹61 to ₹65 per share
Lot Size	2,000 Shares
Total Issue Size	₹46.67 crore through 71.8 lakh shares
Issue Type	Book Built Issue IPO
Listing At	NSE, SME

10. Indifra Ltd

Established in 2009 and formerly called Starleads Consultants Private Limited, Indifra Limited specializes in infrastructure management contracting, gas pipeline installation, and distribution of electrical equipment. As of December 2023, the company is actively engaged in managing gas pipelines for Charotar Gas Sahakari Mandali Limited (CGSML) and has previously collaborated with Adani Gas Limited.

Its primary objectives through the IPO proposal are:

1. Meeting working capital needs
2. Addressing general corporate objectives and financing investments for acquisitions
3. Covering expenses related to the public issue

IPO Date	December 21–26
Face Value	₹10 per share
Price Band	₹65
Lot Size	2,000 Shares
Total Issue Size	₹14.04  crore through 21.49 lakh shares
Issue Type	Fixed Price Issue IPO
Listing At	BSE, SME

11. Trident Techlabs Ltd

The provider of IT services and solutions to businesses was founded in 2000 and offers tech-based solutions to diverse industries such as aerospace, defense, automotive, telecommunications, semiconductor, and power distribution. The company operates across two sectors – engineering solutions and power system solutions. Trident Techlabs employs over 100 engineers and professionals.

 The company intends to use the net proceeds for:

1. Financing the Company’s working capital requirements.

2. Covering general corporate needs.

The agro-processing and infrastructure development company is seeking ₹62.64 crore through its IPO, with a price band of ₹180 per share and a total issue of 3.50 lakh equity shares. 

IPO Date	December 21–26
Face Value	₹10 per share
Price Band	₹33 to ₹35 per share
Lot Size	4,000 Shares
Total Issue Size	₹16.03 crore through 45.8 lakh shares
Issue Type	Book Built Issue IPO
Listing At	NSE, SME

12. Sameera Agro And Infra Limited

Established in 2002, Sameera Agro And Infra Limited, formerly Sameera Homes Private Limited, operates as an infrastructure development and construction firm. The company specializes in planning, developing, and building residential and commercial spaces, flyovers, subways, industrial parks, laying water pipelines, gas pipelines, and related projects. 

The company that entered into agricultural commodities such as pulses, cereals, and grains in 2021 proposes to use the net proceeds from the fresh issue for:

1. Completion of ongoing projects.

2. Construction of a new multiplex.

3. Fulfillment of existing working capital needs for the agro-business.

4. Covering general corporate expenses.

IPO Date	December 21–27
Face Value	₹10 per share
Price Band	₹180 per share
Lot Size	800 Shares
Total Issue Size	₹62.64 crore through 3.50 lakh shares
Issue Type	Book Built Issue IPO
Listing At	NSE SME

The 8 IPOs Listing this Week

As the above companies open their IPOs, there will be more action in the primary market as some giants await listing simultaneously. These are:

1. DOM Pens
2. INOX India
3. SJ Logistics
4. India Shelter Finance Corporation
5. Siyaram Recycling Industries
6. Shri OSFM E-mobility
7. Presstonic Engineering 
8. Benchmark Computer Solutions 

While these IPOs add to the stock market’s diversity, attracting interest from investors because of the companies’ and sectors’ growth prospects, investors should thoroughly research and vet their risk tolerance before investing in any IPO.

However, investors should also be cautious and do their due diligence in researching and vetting their risk tolerance before investing in any IPO.

QUICK LINKS:

CURRENT IPOS | LISTED IPOS | UPCOMING IPOS

Also Read:
How To Make Passive Income | AI Stocks
What is compounding | How to Invest in Shares Pre-IPO

The new week started on Monday, and with it came the announcement of the initial public offering (IPO) of Muthoot Microfin Ltd. This subsidiary of the Muthoot Group, a leader in India’s microfinance sector, will be open for subscription on December 18, 2023. If you’re an investor, here are the 10 key things you need to know.

Overview of Muthoot Microfin Ltd. IPO

It’s early days for Muthoot Microfin’s IPO; by 10:24 AM, subscriptions were at 0.06 times overall. Retail investors are more proactive, filling 0.15 times, while the institutional portion was 0.04 times. Investors can choose between 2.61 crore fresh shares worth ₹760 crore or tap into the ₹200 crore offer-for-sale. 

Background of Muthoot Microfin Ltd

Muthoot Microfin Ltd. is India’s leading microfinance institution (MFI), serving over 5.5 million women entrepreneurs across 23 states and 5 union territories. The company provides a range of financial products and services, including microloans, group loans, and individual loans, primarily focused on women borrowers in rural and semi-urban areas.

Muthoot Microfin Ltd. was founded in 2011 as a subsidiary of the Muthoot Group, a diversified financial conglomerate with over 90 years of experience in the financial services sector. The company leverages the extensive network and expertise of the Muthoot Group to reach underserved communities and provide them with access to financial services.

10 Key Muthoot Microfin Ltd. IPO Details to Know:

1. Total Equity Shares and Fundraising: The IPO is expected to raise up to ₹960 crore through the issue, as the company allocated 97,93,812 shares. 
2. Offer for Sale Structure: The offer for sale (OFS) by promoters and existing shareholders is up to ₹200 crore through 6,872,852 equity shares. Key participants include investor Greater Pacific Capital WIV (₹50 crore) and Muthoot family promoters (₹150 crore).
3. Key Dates: The IPO subscription opens on 18 December 2023 and closes on 20 December 2023. The shares are expected to be listed on the BSE and NSE on 26 December 2023.
4. Lot Size: The minimum lot size for participation in the IPO is 51 equity shares. Investors can place bids in multiples of 51 shares. The minimum investment amount for retail investors at the lower price band of ₹277 per share is ₹14,127, while at the upper price band, the minimum investment amount increases to ₹14,841.
5. Price Band: The IPO price band is fixed at ₹277 to ₹291 per equity share. 
6. Reserved Quota for Shareholders: The reservation of shares worth ₹10 crore for eligible employees at a discount of ₹14 per share. The net offer will be allocated with 50% reserved for qualified institutional bidders (QIBs), 35% for retail investors, and 15% for non-institutional investors.
7. Gray Market Premium: Market observers state that the IPO is currently trading at a premium of ₹82 per share in the gray market.
8. Amount from anchor investors: The company mobilized ₹285 crore from anchor investors. 
9. Financial Performance and Growth Metrics: During the fiscal year that ended on 31 March 2023, Muthoot Microfin experienced a substantial 72% increase in revenue, registering ₹1,446.34 crore. The company’s profit after tax (PAT) witnessed a 245% growth to ₹163.89 crore.
10. Book-Running and Lead Managers: While Axis Capital, ICICI Securities, SBI Capital Markets, and JM Financial serve as the book-running lead managers, Kfin Technologies is the designated registrar for Muthoot MicroFin Ltd. 

SWOT Analysis of Muthoot Microfin Ltd

STRENGTHS	WEAKNESSES
Strong brand recognition and reputation of the Muthoot Group. Extensive branch network and customer reach. Experienced management team with a deep understanding of the microfinance sector. Focus on women borrowers and financial inclusion.	Dependence on the rural and semi-urban market, which is vulnerable to economic downturns.High concentration of loans in the southern states of India.Susceptibility to interest rate fluctuations.
OPPORTUNITIES	THREATS
Growing demand for microfinance in India due to increasing financial inclusion and government initiatives.Diversification into new product categories and geographies.Adoption of technology to improve efficiency and reach.	Increasing competition from other MFIs and banks.Regulatory changes in the microfinance sector.Economic slowdown impacting borrowers’ repayment capacity.

As the IPO for the Muthoot Microfin Ltd. IPO opens on 18 December, these are the top 10 things to look at for investors before making any decision. 

QUICK LINKS:

CURRENT IPOS | LISTED IPOS | UPCOMING IPOS

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.