Right from the Covid-19 crisis to the tightening of regulatory requirements on capital in a short span and increasing competition, all these three headwinds hit the microfinance industry in one go. The result, the stocks that at one point in time were getting high valuations cracked sharply and underperformed. This is how the journey of the last few years of microfinance companies can be described. However, given the fact that they are the lender to the most marginalized section of society where the requirement of capital is always high, these companies have been able to manage and have been able to survive though growth has not been as expected. In any sector, the phase of headwinds comes at the face where two things tend to happen. First, few players get more attention on the street second the upward journey of stocks is slightly more volatile in the initial phase of recovery.
Budget 2024: "83 lakh self-help groups with 9 crore women are transforming the rural socio-economic landscape with empowerment and self-reliance. They are an inspiration to others. Their achievements will be recognized through honouring them. Buoyed by the success, it has been decided to enhance the target for Lakhpati Didi from 2 crore to 3 crore," Finance Minister Nirmala Sitharaman said.
Shares of Muthoot Microfin soared 14 percent in intra-day deals on Tuesday, January 30, as the company more than doubled its net profit for the December quarter.
Muthoot Microfin sold its IPO in the price band of Rs 277-291 per share, with a lot size of 51 shares. The IPO was open for bidding from December 18 to December 20.