Belstar Microfinance Limited Filed DRHP; Belstar to Raise Rs 1,300 Crore Via IPO

Belstar Microfinance Limited is a subsidiary of Muthoot Finance, has filed a draft red herring prospectus with SEBI. The company plans to raise Rs 1300 via its initial public offering (IPO). This upcoming IPO is a combination of fresh issue and offer-for-sale. The fresh issue comprises Rs 1,000 crore and OFS of Rs 300 crore.  As part of the Offer-for-sale, Danish Asset Management firm MAJ Invest intends to offload shares for Rs 175 crore. The second one on the list is Arum Holdings Limited which will offload Rs 97 crore and Arum Investments Zero Pte Limited Rs 28 crore. Muthoot Finance is its holding company, which holds 66% of the stake in Belstar Microfinance Limited. 

About Belstar Microfinance Limited

Belstar Microfinance was founded in 188 in Bangalore and is a non-banking financial services company. It is an arm of Muthoot Finance. The company’s primary focus is on providing microfinance loans to the customers. Belstar’s business model is unique because it strives for a double-bottom line targeting both financial performance as well as social transformation. The company’s aim is to alleviate poverty and enhance community development. The Brand growth of Belstar was accelerated after an equity investment by Muthoot Finance. Belstar Microfinance’s vision is to be a socially responsible microfinance institution working toward women's entrepreneurship and economic empowerment and achieving double lines. The mission is to further impact over 3.5 million women through affordable credit and entrepreneurship by 2025.

Objectives of Belstar Microfinance IPO

The proceeds from this initial public offer worth Rs 760 crore will be used to meet the capital requirements in future for providing loans. The remaining amount will be used to meet the general corporate purposes. 

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Financials of Belstar Microfinance IPO

The company reported a revenue of Rs 1283.14 crore and net profit of Rs 235.1 crore for the quarter ending on 31 December 2023. In FY23, the company posted a revenue of Rs 1031.2 crore and PAT of Rs 130.3 crore and In FY22, the revenue was Rs 727.2 crore and PAT was 45.1 crore.

Lead Managers and Registrar of the Issue

The book running lead managers for this Initial Public offer is ICICI Securities Limited, Axis Capital Limited, HDFC Bank Limited, SBI Capital Markets Limited. The registrar of this issue is Link Intime India Private Limited.

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