Muthoot Fincorp, a non-banking finance company, has started discussions with bankers to raise approximately ₹4,000-5,000 crore through an initial public offering (IPO). The IPO is expected to value the company between ₹25,000 crore and ₹28,000 crore, according to livemint.com.
The planned IPO will comprise only fresh shares, with no offer-for-sale component currently planned. The company is engaging with financial institutions to finalize the details of the share sale and pricing. This move follows Muthoot Fincorp's strategy to strengthen its capital base and expand its lending operations, as reported by livemint.com.
This IPO could be one of the larger listings in the non-banking financial sector this year, reflecting growing investor interest in the space. Comparable deals in the sector have seen strong subscription levels, indicating robust demand for financial services firms. The valuation range places Muthoot Fincorp among the top-tier NBFCs in India, highlighting its market position and growth prospects, per livemint.com.
Muthoot Fincorp's discussions with bankers mark a significant step toward its public market debut. The company has yet to announce a final date for the IPO, but the valuation and size suggest it will attract considerable attention from institutional investors. The next update on the IPO process is expected as the company files regulatory documents.