Asirvad Micro Finance, a subsidiary of Manappuram Finance, has submitted preliminary papers to Sebi for an IPO aiming to raise Rs 1,500 crore. The IPO will consist solely of fresh equity shares, with no offer-for-sale (OFS) component, as per the draft red herring prospectus (DRHP).
The company also intends to raise up to Rs 300 crore in a pre-IPO round, potentially reducing the size of the fresh issue. Proceeds from the IPO will bolster the company’s capital base to meet future business needs.
In the fiscal year 2022-23, Asirvad Micro Finance managed assets worth Rs 10,040.89 crore, compared to Rs 7,002.18 crore in the previous fiscal year. JM Financial, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India) Private Ltd, and SBI Capital Markets will serve as the book-running lead managers for the IPO. The company’s equity shares will be listed on the BSE and NSE.
On Thursday, Manappuram Finance’s shares closed at Rs. 140.45 on the NSE, showing a 1.20% decline.