Avanse Financial Services Initiates ₹3500 Crore IPO: SEBI DRHP Filed

Avanse Financial Services Limited filed a DRHP and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 1000 Crore of equity shares and an offer for sale worth up to Rs 2500 Crore of equity shares. The face value is reported as Rs. 5 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. So, when will the IPO come? The Application for public issue and subscription opening/closing dates and other important dates will be declared soon. At the same time, the public issue price band at which you can bid will be declared soon.

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About Avanse Financial Services Limited

Avanse Financial Services Limited is India's second-largest education-focused non-banking financial company (NBFC) by assets under management (AUM) as of March 31, 2024 (Source: CRISIL Report). They offer a full-stack education offering with products ranging from education loans for students to growth capital for education institutions through education infrastructure loans. Avanse has seen its AUM grow significantly, from ₹48,356.09 million as of March 31, 2022, to ₹133,030.47 million as of March 31, 2024, reflecting a robust CAGR of 65.86%. Their student loans – international business serves over 35,800 students across 41 countries, with a focus on STEM and MBA courses. Avanse's education loans – domestic business supports 48,194 students and professionals in India, emphasising executive learning programs and skill development courses.

Avanse Financial Services Limited IPO Objectives

The company intends to utilise the received net proceeds fresh issue towards augmenting our capital base to meet our company's future capital requirements arising out of the growth of our business and assets. A portion of the net proceeds from the Fresh Issue will be used to meet Offer Expenses. Further details of all monies utilised out of the Fresh Issue will be disclosed and will continue to be disclosed till the time any part of the Gross Proceeds remains unutilised, under an appropriate separate section in the balance sheet of our company indicating the purpose for which such monies have been utilised, said by the company in DRHP.

Financials of the Company

As of March 31, 2024, compared to March 2023, the company's assets increased by 47.40% to Rs 14,343.84 crore. However, revenue increased by 74.50% to Rs 1,726.96 crore, and profit after tax showed remarkable growth, with an increase of 117.14% to Rs 342.40 crore for the same period. Total borrowing also increased to Rs 10,135.25 crore from Rs 7,210.13 crore as compared to FY24 from FY23. These numbers show how the company's finances have been and where exactly there is a need to make strategic changes.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by several giants, including Kotak Mahindra Capital Company Limited, Avendus Capital Private Limited, J.P. Morgan India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) and SBI Capital Markets Limited, which is the book-running lead manager of this public issue. Link Intime India Private Limited has been appointed as the registrar for the issue, while the company has Olive Vine Investment Ltd as a promoter.

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