Non-banking finance company Manappuram Finance Ltd on Friday (February 16) said it has filed an addendum to the ₹1,500 crore initial public offer (IPO) of Asirvad Micro Finance with the Securities and Exchange Board of India (SEBI).
The company had filed DRHP (Draft Red Herring Prospectus) with SEBI for Asirvad Micro Finance's IPO on October 5, 2023. However,
SEBI put the IPO on hold on January 10, 2024.
The maiden public issue is completely a fresh issue of equity shares with no offer-for-sale (OFS) component. The company also planned to raise ₹300 crore in a pre-IPO round. If such placement is completed, the fresh issue size will be reduced. Going by the draft papers, proceeds from the issue will be used to augment the capital base of the company to meet future business requirements.
Asirvad, which started in 2008 with two branches in Tamil Nadu, has since expanded to 22 states and 4 UTs through a network of 1,684 branches as of March 31, 2023. It caters to 3.25 million active borrowers in the microfinance portfolio that constitutes a majority of its assets under management. It also caters to loans against gold and MSME loans.
In the 2022-23 fiscal, Asirvad had assets under management (AUM) of ₹10,040.89 crore as against ₹7,002.18 crore in fiscal 2021-22. 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 issue. The equity shares of the company will be listed on the exchanges.
