Company Overview & Fundamentals
Belstar Microfinance Limited is a leading Non-Banking Financial Company – Microfinance Institution (NBFC-MFI) in India, operating as a key subsidiary of Muthoot Finance Limited. Originally incorporated in 1988, Belstar was acquired and re-oriented towards microfinance to support micro-entrepreneurs and economically empower women in rural and semi-urban areas.
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Business Model: Self-Help Group (SHG) and Joint Liability Group (JLG) models delivering micro-loans for agriculture, micro-enterprises, and household support.
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Geographic Focus: Headquartered in Chennai, with a major footprint in Southern India (Tamil Nadu represents its largest single portfolio concentration) and expanding operations across 18+ states and UTs.
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Parent Synergies: Operates under Muthoot Finance Group, leveraging strong brand equity, parent capital support, and diversified funding channels.
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Credit Rating: Rated CRISIL AA/Stable and CARE AA/Stable, reflecting strong promoter backing and capital adequacy.
Financial Performance (FY22 – FY24 Trend)
Belstar experienced significant post-pandemic growth, expanding its loan book and net profits sharply supported by regulatory changes in MFI lending rates.
| Financial Metric | FY22 | FY23 | FY24 |
| Total Revenue | ₹727.2 Cr | ₹1,031.3 Cr | ₹1,851.4 Cr |
| Profit After Tax (PAT) | ₹45.1 Cr | ₹130.3 Cr | ₹339.8 Cr |
| Return on Equity (RoE) | 6.46% | 13.38% | 19.46% |
| Gross NPA Ratio | High (Covid era) | 3.3% | 2.6% |
(Sources: Company DRHP & CRISIL Rating Disclosures)
DRHP & Upcoming IPO Details
Belstar Microfinance filed its Draft Red Herring Prospectus (DRHP) with SEBI in May 2024 to raise capital for augmenting its Tier-I capital base and onward lending requirements.
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Total Issue Size: Up to ₹1,300 Crore
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Fresh Issue: Up to ₹1,000 Crore
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Offer for Sale (OFS): Up to ₹300 Crore (by investor selling shareholders including MAJ Invest)
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Listing Venues: BSE & NSE
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Promoter Post-IPO Holding: Muthoot Finance will remain the majority controlling shareholder following the issue.
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Lead Managers: ICICI Securities, Axis Capital, HDFC Bank, and SBI Capital Markets.
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