Asirvad Micro Finance had filed preliminary papers with Sebi in October 2023 to garner Rs 1,500 crore by an IPO. Image for illustration
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Capital markets regulator Sebi has stored in “abeyance” the proposed Rs 1,500 crore Initial Public Offering (IPO) of Asirvad Micro Finance, a subsidiary of listed NBFC Manappuram Finance.
However, the Securities and Exchange 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 an IPO.
As per the draft purple herring prospectus (DRHP), the general public problem was purely a contemporary problem of fairness shares with no provide on the market (OFS) element.
Without disclosing the rationale, Sebi mentioned “issuance of observations (has been) kept in abeyance” with regard to the IPO of Asirvad Micro Finance, an replace on the regulator’s web site confirmed on January 10.
The particulars have been up to date as on January 5.
The issuance of an observations letter by Sebi implies its go-ahead for an IPO. Sebi normally provides its observations on IPO papers in 30 days.
Going by the draft papers, proceeds from the difficulty have been proposed for use to reinforce the capital base of the corporate to fulfill 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 over time. It has a presence throughout 22 states and 4 Union Territories by 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 Financial, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India) Private Ltd, and SBI Capital Markets are the book-running lead managers to the difficulty.
