Asirvad Micro Finance, the subsidiary of listed NBFC Manappuram Finance, a non-banking finance company - microfinance institution ("MFI") offering microfinance loans to low-income women, servicing and empowering an unbanked population to socially and economically underprivileged, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The Company had filed preliminary IPO papers with Sebi on October 04, 2023.
The IPO has a face value of Rs 10 per share and is a fresh issue of equity shares up to Rs 1500 crore with no offer for sale (OFS) component.
The issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the issue shall be available for allocation to non-institutional bidders, and not more than 10% of the issue shall be available for allocation to retail individual bidders.
The company, in consultation with the lead bankers to the issue, may consider a further issue of equity shares on a private placement for cash consideration aggregating up to Rs 300 crore ("Pre-IPO Placement"). If such placement is completed, the fresh issue size will be reduced.
As per the DRHP, the net proceeds from the fresh issue will be used to augment the capital base of the Company to meet future business requirements and plan to be deployed in FY24.
Asirvad Micro Finance embarked on its journey in 2008 with just two branches in Tamil Nadu. Over the years it has expanded its reach across India, to now be present across 22 states and 4 UTs through a network of 1684 branches, as on March 31, 2023 which covers 450 districts.
As on March 31, 2023 it caters to 3.25 million active borrowers in the microfinance portfolio that constitutes a majority of its assets under management. It also caters to Loan against Gold and provides MSMEs loans.
It stands to be India's Largest NBFC MFI considering its geographic reach and third in terms of assets under management and no of clients. It ranks 2nd in terms of state presence and maintaining the lowest concentration amongst the top 3 states when compared to the top 10 NBFC MFIs in the country.
JM Financial Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited, and SBI Capital Markets Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
Shares of Manappuram Finance Limited was last trading in BSE at Rs. 197.05 as compared to the previous close of Rs. 200.95. The total number of shares traded during the day was 722201 in over 8121 trades.
The stock hit an intraday high of Rs. 206.40 and intraday low of 195.90. The net turnover during the day was Rs. 144586132.00. |
