Muthoot Finance Ltd promoters will bring down their holding in the company by a little over 5 per cent to 75 per cent.
The company will do this some time within the next 18 months, by issuing additional equity to an investor, Managing Director George Alexander Muthoot told Business Line today.
He hinted at a QIP issue at an appropriate time, when the market gives the company fair valuation. (On the BSE on Friday, the Muthoot Finance shares closed at Rs 133.20. The 52-week high-low rates are Rs 198 and Rs 105.70, respectively.
The dilution is to meet the listing requirement (at least 25 per cent of the shares should be with the public) and also to raise equity capital.
While the promoters own 80 per cent of the share capital of Rs 371.70 crore, institutions hold another 18 per cent. The public holds only 2 per cent.
Muthoot Finance is the largest gold financing NBFC, with a history of over 70 years. The company has 3,780 branches, 65 per cent of which are located in South India. Its networth stands at Rs 3,161 crore.
In 2011-12, the company’s net operating income was Rs 2,158 crore and net profit was Rs 892 crore. Each share earned Rs 24.70.
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