Manappuram Updates ₹1,500 Cr Asirvad Micro Finance IPO

Manappuram Updates ₹1,500 Cr Asirvad Micro Finance IPO

Asirvad Micro Finance, a subsidiary of Manappuram Finance, has filed an addendum to its ₹1,500 crore initial public offer (IPO) with the Securities and Exchange Board of India (SEBI) on Friday (February 16). The company had filed the draft red herring prospectus (DRHP) for the IPO on October 5, 2023, but SEBI put it on hold on January 10, 2024.

Asirvad Micro Finance IPO details

The IPO 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. The proceeds from the issue will be used to augment the capital base of the company to meet future business requirements.

Company profile

Asirvad Micro Finance is one of the leading microfinance institutions in India, providing loans to women from low-income households. It operates in 22 states and union territories with over 1,400 branches and more than 4.5 million customers. As per its FY22-23 annual report, it manages assets worth ₹10,040.89 crore.

Parent company

The company is backed by Manappuram Finance, a leading non-banking finance company (NBFC) that offers gold loans, microfinance, vehicle finance and housing finance. Manappuram Finance acquired a significant majority stake in Asirvad Micro Finance in February 2015 as part of its diversification strategy.

Valuation and advisors

The IPO is expected to value Asirvad Micro Finance at around ₹12,000 crore, according to media reports. The company has appointed JM Financial, Nomura and Kotak Mahindra Capital as the book running lead managers for the issue.

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