Muthoot Finance Ltd IPO Message Board (Page 34)

I have applied for 1120 shares. what will be the allotment.

dear gem ipo finder

i am from haryana
i have 4 full applications
can anybody buy these applications
i want to sell
pl advice me
i am a great follower of u from last 2 years
i read ur every post and act accordingly
and i earned a lot in ipos

latest premium 30 rs.
Listing may be @ 210 rs

This issue would definately repeate the history of Coal India. I read ppl who applied are enthusiast about the listing gains. Traders who sold their Coal India shares on the day of listing are getting heartburns when they see its current prize. Looking at the current bull phase, I feel Muthoot Finance is going to touch 300+ within few weeks. FIIs (subscribed 24.7x) & NII (subscribed 25.4x) accumulated CIL on the listing day @295-310 on the listing date (04-11-2010). The over subscription portion is identical in CIL and MFL.

BJ

THANKS FOR WAKING UP AND ASKING THIS QSTN.

CURRENT PE

1) MANNAPURAM @ 127 IS 23 TIMES CY
2) MUTHOOT @ 175 IS 16 TIMES CY

With the international price of yellow metal hitting an all-time high (quoting over $1,500-an-ounce mark) and the Indian stock market rallying, enthusiastic investors lapped up the public issue of the gold loan company Muthoot Finance Ltd well ahead of its closure deadline on April 21.

The issue was oversubscribed around 24 times, led by the strong demand from institutional investors and HNIs, even as retail investors also applied for shares more than what was reserved for them. The strong response from investors makes it one of the best primary market issues to hit the local market in recent times, in terms of oversubscription figures. Muthoot intends to use the issue proceeds to augment its capital base and meet future capital requirements for funding of loans.

Given the demand for shares, the issue price is likely to be the upper end of the price band of Rs 160-Rs 175 per share or Rs 170, the price at which the anchor investors bought shares, ensuring gains for most of its private equity investors.

Matrix Partners and Kotak PE would be sitting on unrealised gains of around 30 per cent on their less-than-a-year-old investment while Baring PE Partners India would count book profits of around 40 per cent (not counting its further purchase as anchor investor) and Wellcome Trust would just about make up for its investment cost.

The company had earlier attracted investments from around 15 anchor investors that included Baring India Private Equity Fund III, Goldman Sachs and Credit Suisse, besides the world’s largest sovereign wealth fund Abu Dhabi Investment Authority, among others.

ICICI Securities and Kotak Mahindra Capital were the book running lead managers while HDFC Bank was the co-BRLM to the issue.

Business & Competition

The Kerala-based NBFC, touted to be the largest gold loan company in India in terms of loan portfolio, provides personal and business loans secured by gold jewellery. It primarily caters to individuals who possess gold jewellery but cannot access formal credit within a reasonable time or to whom credit may not be available at all. These loans help meet their short-term liquidity requirements.

The gold loan business was started by M George Muthoot in 1939 under the group’s trading business of Gold Loans. In addition, it also provides money transfer services through its branches as sub-agents of various registered money transfer agencies, and has recently started collection agency services. The firm also operates three windmills in Tamil Nadu.

As of February 2011, it had a network of 2,611 branches employing 15,664 persons across India. In comparison, its closest peer Sequoia Capital-backed Manappuram Group, which has a listed company Manappuram General Finance & Leasing Co, has around 2,150 branches in India according to its website.

Manappuram was started nearly a decade after Muthoot, but it also has an equally illustrious history from its initial days of being a local money lender. The company has diversified its business into forex services, money transfers and insurance brokerage while retaining gold loans as the core business.

Both the firms have a fully entrenched presence in southern India, although they have been trying to build a more pan-India spread of their network. Muthoot, in particular, has been actively expanding its north Indian presence.

Valuation

The annualised revenues of Manappuram General Finance for the fiscal ended March, 2011 (extrapolated for results for the first three quarters) work out to be around Rs 1,000 crore, with net profit of Rs 240 crore. At a market cap of Rs 5,444 crore ($1.2 billion), it is valued around 22.6 times its trailing earnings.

But Muthoot is a much bigger player. Its total income for the first eight months of the year ended November, 2010, stood at Rs 1,301 crore with net profit of Rs 291.5 crore. Annualising this for the full last fiscal ended March, 2011, the company would have revenues of around Rs 2,000 crore with net profit of Rs 437 crore.

At Rs 170 per share, Muthoot would be able to generate a valuation of over Rs 6,300 crore or $1.4 billion, giving it a valuation multiple of 14.4x on its projected profit for the year and making it attractive, compared to its already listed peer. This can well be the reason why it has managed to sell its shares like hot cakes.

after so many ipos we will get good amount of shares so hope the listing will be handsome.

What is the pe of mannapuram currently? what would be the pe of muthoot at 175?

Decent allotment chance after less allotment in many good ipo's. Fingers crossed for good listing. As many analysts have pointed out..its in a niche segment with an excellent profit margin.
I feel retail subscription would have been more if they had gone ahead with retail discount..but good for those of us who applied..larger share of the pie

because of 8.5 times subscription in retail category there are no chanses for lottery system and if there is lottery system then it will for below 10 lots will be the lottery system so happy who applied above 10 lots.

Thanks retail bear cartel for not pushing muthoot to 20-30 times. At least we will get some shares on allotment.

listing may be @ 250-260....

VJP @ 311 : You can expect 40 shares by lottery @ 1 out of 3 chance approx

to gem bhai
1. thanks
2. thank you
lol

SUPER DUPER HIT !! - DONT SELL IN HURRY



MUMBAI: Goldman Sachs, Citigroup and Temasek are among scores of global investors scrambling for a share of the pie in companies that are in the rapidly-growing business of lending against gold. Heightened investor interest in this segment is reflected in the fact that the 900-crore initial public offering from Muthoot Finance, the country's largest gold loan company, drew bids for at least 25 times the shares on offer.

Returns from an earlier public offering by rival Manappuram have raised investors' hopes of profiting from this issue too. That raises the possibility of pricing it at the top end of the 160-175 band.

"It is a unique business model and given Indians' obsession with gold, it is an attractive business model," said a director of a US-based fund that bid for it, but did not want to be identified for regulatory reasons. "Given these reasons, the issue is priced attractively and it is difficult to match the scale and expertise of the private players in this segment for banks as it is not their core business."

Manappuram has more than doubled while Shriram Transport Finance has gained 72% since January 2010, compared with a 21% rise for the benchmark Sensex. South Korea's Mirae, US' GMO, Jupiter, Tudor, DKR Oasis, Geosphere and Congruix and private funds such as Barings and Wellcome Trust were among the global bidders, said brokers familiar with the bids.

Attractively priced, feel investors

Domestic funds SBI, HDFC, Reliance, Birla and IDFC also bid for the Muthoot IPO. Lending against gold is seen as the best bet in secured lending, with the precious metal at a record high of $1,500 an ounce. With inflation fears, gold and silver prices are forecast to rise.

Commodities bull Jim Rogers expects gold to rise to $2,000 an ounce in the coming years. Lending about 30% of the value of such an asset ensures safety at 13% interest. If the loan value rises, then interest rate jumps without additional risk which equity investors prefer.

"Investors want to buy unique stories," says Falguni Nayar, head of investment banking at Kotak Mahindra, one of the share sale arrangers. Furthermore, investors believe the stock was priced at a reasonable valuation compared with listed peers, unlike most other issues that are overpriced.

"Muthoot will be trading at an FY12 priceto-book range of 2.2-2.4 times," says Santosh Singh, analyst at Espirito Santo Securities .

Compaq kumar

1) 72-73
2) 67-68

two apps.
1. 600 shares
2. 560 shares
chances of allotment ?

Retail investors are well trapped in pfs ipo and sitting on massive losses, unable to participate,may be major reason for this ipo to oversubscribed bellow 20 times.

According to analysis, we can expect that the company will continue to grow its revenue; but margins will most likely come down in near future due to increasing borrowing costs and increasing competition. Considering the growth prospects, we can expect the company to grow its book value at a rate of ~20% on an average, in the coming years. Also, it can be expected to trade at an PBV multiple of 3 going forward. At the current price band, the issue is priced at a PBV band of 4.04 and 4.13. Thus, at the IPO price band of Rs. 160- 175, the stock is almost fully priced – available at just 9 -10% discount to its right value. But, It is always better to invest in a company at an attractive discount (30-50%) to its right value. Considering this, we advice retail investors to avoid subscribing to the issue. However, Muthoot Finance is a fundamentally sound company and investors can look to invest in the company in the secondary markets when it is available at a 30-50% discount to its right value.

Muthoot will list at 184 to 190............