Muthoot Fincorp is bringing an IPO of ₹3,000 crore. For this the company has filed DRHP with SEBI. The funds raised from the IPO will be used to meet future capital requirements, provide further loans and expand the business. According to the draft papers submitted by the company on Wednesday, this IPO will be a completely fresh issue. That means new shares will be issued in it. This does not include offer for sale. That means no investor is selling his shares. The 139-year-old group’s gold loan core business is Muthoot Fincorp, part of the Muthoot Pappachan Group. It was started in 1887. The company mainly operates in the gold loan segment. The company has been in this business for more than two decades. Apart from gold loan, this company also provides business loan, loan against property, supply chain financing, digital loan, microfinance and housing loan. Company’s profit increased 3 times to ₹ 1,847 crore Knowledge Box: What is the difference between fresh issue and OFS? Fresh Issue: The company issues new shares. All the money received from this goes to the company, which is used to repay the loan or expand the business. Offer for Sale (OFS): Old promoters or investors sell their shares. Its money does not go to the company but goes directly to the investors who sell the shares.
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