Manappuram Finance unit Asirvad Microfinance gets SEBI nod to float IPO; check details

Manappuram Finance's unit, Asirvad Microfinance, has received the approval of the Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO).

The proposed offer is a fresh issuance of shares up to ₹1,500 crore, according to the company's IPO papers with the market regulator.

While 75% of the issue has been set aside for qualified institutional bidders (QIBs), non-institutional investors can bid for 15%, and retail investors for the remaining 10%.

The non-banking financial company (NBFC) may consider issuing fresh equity shares on a private placement basis worth ₹300 crore, it said.

The funds generated from the issue will be utilised to augment the capital base of Asirvad Microfinance to meet future business requirements.

The shares are expected to be listed on the National Stock Exchange (NSE) and BSE.

The company reported a 67.5% growth in its net interest income for the first nine months of fiscal year 2023-24. During the same period, its profit tripled year-on-year.

The book-running lead managers for the issue are Kotak Mahindra Capital Company, JM Financial, SBI Capital Markets and Nomura Financial Advisory and Securities (India).

Following the announcement, shares of Manappuram Finance closed 1.6% higher on the NSE. Intraday, the stock hit a high of ₹207.3.

About Asirvad Microfinance

Launched in 2008 with two branches in Tamil Nadu, Asirvad Microfinance has spread across India with 1,684 branches in 450 districts as of March 31, 2023.

As of the financial year 2023-24, the NBFC caters to 3.25 million active borrowers in the microfinance portfolio, constituting most of its assets under management. It also provides loans against gold and MSME loans.