Muthoot Finance Limited which had tapped the capital markets with its IPO for 5.15 cr shares in a price band of Rs 160-175 is to list on Friday the 6th of May at a listing ceremony at the BSE. The share would be traded at both the BSE and NSE. The company has raised Rs 901.25 crs at the top end of the price band of Rs 175. The issue had received excellent response from all categories of investors and was subscribed 24.55 times.
Tomorrow is a very auspicious day in the Hindu calendar “Akshaya Trithiya” and Hindus normally buy precious metals like gold and silver on this day being a very auspicious day there are very large numbers of marriages as well. It would be interesting to see a company who is a pawn broker or one who finances loans against gold brings cheer to a market which is falling for the last eight days or not. The cost of leveraged investor or HNI in this issue was about Rs 30 which means as long as the price remains below Rs 205, the HNI is losing money.
This segment of business would also attract a lot of attention in a similar fashion as SKS Microfinance did when they went public. It is a separate story that the overhyped issue did very well on listing and gained 50% post listing before crashing to a un heard price of below Rs 420 for a stock which saw a high of Rs 1491 and an issue price of Rs 985.
