Avanse Financial Services, an education focused non-banking financial company (NBFC) operating in India, has filed its draft red herring prospectus (DRHP) with the capital market regulator to launch its initial public offering (IPO) to raise funds on Thursday, June 20, 2024.
Avanse Financial Services is looking to raise a total of Rs 3,500 crore through its initial primary stake sale. The issue includes a fresh share sale of Rs 1,000 crore and offer-for-sale (OFS) component of up to Rs 2,500 crore from its promoters and existing shareholders of the company.
The net proceeds from the issue shall be utilized towards augmenting the capital base to meet the company’s future capital requirements arising out of growth of business and assets and general corporate purposes. However, the proceeds from OFS shall go to the selling shareholders.
Promoter Olive Vine Investment will be offloading shares up to Rs 1,758 crore, whereas other investors International Finance Corporation and Kedaara Capital Growth Fund III LLP shall be offering 342 crore and Rs 400 crore from their stake in the IPO process.
According to a report from CRISIL, Avanse Financial Services is the second largest education focused shadow lender in India in terms of assets under management (AUM) as of March 31, 2024. It have the second highest disbursements during the financial year 2023 and recorded the second highest profit after tax in financial year 2024 among education focused NBFCs in India.
The company offer a full stack education offering with products ranging from education loans for students to growth capital for education institutions through education infrastructure loans.
Through student-loans – international and education loans – domestic businesses, the company provides loans and other value-added services to Indian students and professionals who are admitted to study overseas or at domestic institutions. It also provides collateral-backed financing to private educational institutions in India.
Kotak Mahindra Capital Company, Avendus Capital, JP Morgan India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management and SBI Capital Markets are the book running lead managers to the issue. Link Intime has been appointed as the registrar for the issue. Shares of the company shall be listed at both BSE and NSE.