Kochi-based Muthoot Microfin has fixed the price band at Rs 277-291 per share for its public issue opening next week.

The Rs 960-crore initial public offering will open for subscription on December 18 and close on December 20. The anchor book will be open to institutional investors for a day on December 15.

The IPO comprises a fresh issue of Rs 760 crore shares by Muthoot Microfin, and an offer-for-sale (OFS) of shares worth Rs 200 crore by the existing shareholders including investor Greater Pacific Capital WIV, which will sell off shares worth Rs 50 crore.

The remaining shares worth Rs 150 crore will be sold by promoters Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George.

Greater Pacific Capital-based Muthoot Microfin has reserved Rs 10 crore worth of shares for its employees who will get those shares at a discount of Rs 14 per share to the final issue price.

The net fresh issue proceeds will be utilised mainly for augmenting its capital base to meet future capital requirements of the company.

Investors can bid for a minimum of 51 equity shares and in multiple of 51 shares thereafter. Retail investors can make a minimum investment of Rs 14,841 for 51 shares, and their maximum investment in the IPO will be Rs 1,92,933 for 663 shares as they can invest up to Rs 2 lakh in the IPO.

Half of the issue size has been reserved for qualified institutional buyers, 15 percent for high networth individuals, and the balance 35 percent portion in the offer is set aside for retail investors.

The book running lead managers to the issue are ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets.

The organisation provides micro-loans to women customers with a focus on rural regions in the country. This will be the seventh public issue in current month, after India Shelter Finance Corporation, Doms Industries, Inox India, Motisons Jewellers, Suraj Estate Developers, and Happy Forgings.