Asirvad Micro Finance had filed preliminary papers with Sebi in October 2023 to garner Rs 1,500 crore by means of an IPO. Picture for illustration
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Capital markets regulator Sebi has saved in “abeyance” the proposed Rs 1,500 crore Preliminary Public Providing (IPO) of Asirvad Micro Finance, a subsidiary of listed NBFC Manappuram Finance.
Nonetheless, the Securities and Alternate Board of India (Sebi) didn’t make clear additional.
Reacting to the event, shares of Manappuram Finance plunged as a lot as 7.45% to a low of ₹163.40 apiece on the BSE on January 10.
Asirvad Micro Finance had filed preliminary papers with Sebi in October 2023 to garner Rs 1,500 crore by means of an IPO.
As per the draft pink herring prospectus (DRHP), the general public difficulty was purely a recent difficulty of fairness shares with no provide on the market (OFS) part.
With out disclosing the rationale, Sebi mentioned “issuance of observations (has been) saved in abeyance” with regard to the IPO of Asirvad Micro Finance, an replace on the regulator’s web site confirmed on January 10.
The main points had been up to date as on January 5.
The issuance of an observations letter by Sebi implies its go-ahead for an IPO. Sebi often provides its observations on IPO papers in 30 days.
Going by the draft papers, proceeds from the difficulty had been proposed for use to reinforce the capital base of the corporate to satisfy future enterprise necessities.
Asirvad Micro Finance, which started its journey in 2008 with simply two branches in Tamil Nadu, has expanded its attain throughout India through the years. It has a presence throughout 22 states and four Union Territories by means of a community of 1,684 branches as on March 31, 2023.
As on March 31, 2023, it caters to three.25 million lively debtors within the microfinance portfolio that constitutes a majority of its belongings beneath administration. It additionally caters to loans towards gold and gives loans to MSMEs.
For fiscal 2022-23, Asirvad Micro Finance had belongings beneath administration (AUM) of Rs 10,040.89 crore as towards Rs 7,002.18 crore for fiscal 2021-22. Its revenue after tax (PAT) jumped to Rs 218.13 crore in FY22-23 as in comparison with Rs 15.26 crore in FY21-22.
JM Monetary, Kotak Mahindra Capital Firm, Nomura Monetary Advisory and Securities (India) Non-public Ltd, and SBI Capital Markets are the book-running lead managers to the difficulty.