Muthoot Microfin is planning to raise Rs 350 crore by selling shares during the current economic year to fund business growth.
Muthoot Pappachan Group is also looking to raise Rs 100 crore from Tier-II bonds. Muthoot is currently working in 17 states and union territories. At the same time, the company plans to enter Uttarakhand too. Company is looking to garner USD 50 million or about Rs 350 crore equity capital to grow and build balance sheet .
Muthoot Microfin Chief Executive Officer Sadaf Sayeed in a statement to his effect said,
" Once the situation improves the business and collection should be back to normal as we had experienced last year. capital infusion will help the company not only to bolster its balance sheet but also to expand its reach ."
Hiring During pandemic period
Even during the pandemic, the company hired 2300 of its employees, as it opened 64 new offices in different parts of the country. Now Company plans to enter Utharakhand.
AUM expected 8000 crore next financial year
Muthoot Microfin expects its Assets Under Management (AUM) to be Rs 6500 crore by March 2022 and Rs 8000 crore in the next financial year. The companys AUM increased by six percent to Rs 5227 crore from Rs 4232 crore at the end of March 2020.
Capital adequacy end of march 2021
At the end of March 2021, the micro-finance institution had a capital adequacy ratio of 26.75 per cent. The company says that it is currently the sixth largest NBFC-MFI in the country with more than 19 lakh women entrepreneurs as its active customers.
