Muthoot Microfin shares open at 4.46% less than IPO price on BSE
Muthoot Microfin shares on Tuesday made a weak debut on the stock exchanges, listing at a discount of ₹17 on Bombay Stock Exchange. The shares were trading at ₹273.60 a piece, 5 per cent less than the issue price of ₹291.
Earlier in the day, the shares of Muthoot Microfin had opened at ₹278 before touching an all-time high of ₹280.80 a piece. The shares have hit a low of ₹265. Prior to the listing on the exchanges, the shares of Muthoot Microfin were trading at a premium of ₹27. The shares were expected to be listed at ₹318, 9.28 per cent more than the issue price.
ALSO READ: Muthoot Microfin IPO listing LIVE coverage
Muthoot Microfin, a flagship firm of the Muthoot Pachappan Group, had opened its IPO for subscription from December 18 to 20. The initial issue had comprised fresh issue of ₹760 crore and an Offer for Sale (OFS) of ₹200 crore.
An OFS allows the promoters of a firm to sell their shares to institutional and retail investors via exchanges.
The IPO of Muthoot Microfin had received 11.52 times subscription on the last day of the bidding. The Qualified Institutional Buyers (QIB) category received 17.47 times bidding while the non-institutional investors portion was subscribed 13.20 times. The retail individual investors (RII) category received 7.61 times subscription.
The shares of Muthoot Microfin were listed on the day the Sensex opened flat in early trade. The Sensex had climbed 87.6 points to 71,194.56 in early trade. The Nifty went up by 40.25 points to 21,389.65. The markets had opened after a long weekend due to Monday being a Christmas holiday.
On Friday, the BSE benchmark Sensex had climbed 241.86 points to settle at 71,106.96. The Nifty went up by 94.35 points to close at 21,349.40.
