Analysts said a series of NBFCs getting listed in the last few months and a wave of other IPOs led to a divergence of focus from Muthoot. Furthermore, the company is more focused on the Southern region and valuation is on par with other listed NBFCs, which might be a reason for the tepid debut on the bourses.
Muthoot Microfin s IPO received decent intreset from investors with the issue being subscribed 11.52 times. QIBs led from the front, as they bid 17.47 times their allotted quota.
The Nifty PSU Bank index jumped 28 per cent in the year 2023 so far (as of December 20) while the benchmark Nifty 50 gained about 17 per cent in the same period.
Analysts said there is still value in holding the stock from a medium- to long-term perspective as the company boasts of strong fundamentals and delivered strong financial performance in the last few years.