Muthoot Microfin, the microfinance subsidiary of Muthoot Pappachan group, plans to raise Rs 1,350 crore through an initial public offering (IPO) and has filed draft papers with market regulator SEBI.

The proposed IPO of the company, which provides micro loans to women customers, will comprise a fresh issue of equity shares amounting to Rs 950 crore and an offer for sale (OFS) to the tune of Rs 400 crore.

According to the Draft Red Herring Prospectus (DRHP) filed on Friday, the company will also look at pre-IPO placement to raise Rs 190 crore. If that placement is undertaken, the size of the fresh issue will be reduced.

The company plans to use proceeds from the fresh issue for augmenting its capital base to meet future capital requirements.

Through the OFS route, various entities plan to offload Rs 400 crore-worth shares. While Greater Pacific Capital WIV Ltd proposes to offload equities worth up to Rs 100 crore, Thomas John Muthoot, Thomas Muthoot and Thomas George Muthoot plan to sell shares aggregating up to Rs 70 crore each.

Besides, shares valued up to Rs 30 crore are planned to be offloaded, each by Preethi John Muthoot, Remmy Thomas and Nina George, as per the DRHP.

Incidentally, this is the second time the company has filed DRHP with Sebi for IPO. Though it had received Sebi approval in 2018, it did not go ahead with the IPO as the market situation worsened following the IL&FS fraud-led liquidity crisis for non-bank lenders.

The company had a gross loan portfolio of Rs 9,208.29 crore at the end of 31 March 2023.