Avanse Financial Services Limited, a leading player in India’s financial services sector specializing in education-focused lending, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO) valued at ₹3,500 crore.
IPO Details and Strategic Objectives:
Avanse’s IPO comprises both a Fresh Issue and an Offer for Sale (OFS).
The company aims to raise up to ₹1,000 crore through the Fresh Issue, while existing shareholders plan to offer up to ₹2,500 crore via the OFS.
This includes substantial offerings from Olive Vine Investment Ltd (₹1,758 crore), International Finance Corporation (₹342 crore), and Kedaara Capital Growth Fund III LLP (₹400 crore), aiming to enhance liquidity and broaden the company’s investor base.
Financial Highlights
For the fiscal year ending March 31, 2024, Avanse reported impressive financial metrics:
- Assets Under Management (AUM) surged to ₹13,303.05 crore, reflecting a robust 53.86% year-over-year increase.
- Total Income reached ₹1,728.81 crore, showcasing substantial growth year-on-year.
- Net Profit more than doubled to ₹342.40 crore, underscoring strong profitability and effective cost management.
- Disbursements totaled ₹6,335.00 crore, supporting a diverse lending portfolio and consistent growth trajectory.
Strategic Positioning and Growth Plans
The IPO is strategically positioned to bolster Avanse’s market standing and capitalize on emerging opportunities within the financial services sector.
The company’s growth strategy includes expanding its investor base and reinforcing its market position through strategic initiatives.
Book Running Lead Managers and Registrar to the Offer
Avanse’s IPO process is facilitated by esteemed Book Running Lead Managers (BRLMs) such as Kotak Mahindra Capital, Avendus Capital, J.P. Morgan India, Nomura Financial Advisory, and SBI Capital Markets.
These institutions will oversee the execution of the IPO, ensuring widespread investor participation across diverse market segments.
Link Intime India Private Limited has been appointed as the Registrar to the Offer, responsible for managing the IPO application process, addressing investor grievances, and ensuring seamless coordination between Avanse, investors, and regulatory authorities.
