Avanse Financial Secures Sebi Approval For Rs 3,500 Cr IPO

Avanse Financial Services, a non-banking financial company (NBFC) specialising in education financing, has received approval from the Securities and Exchange Board of India (SEBI) for its Rs 3,500 crore initial public offering (IPO). This approval comes nearly three months after the company refiled its draft red herring prospectus (DRHP).

According to a report by Crisil, Avanse Financial Services is the second-largest education-focused NBFC in India by assets under management (AUM) as of 31 March 2024. The proposed IPO includes a fresh issue of equity shares worth up to Rs 1,000 crore and an offer-for-sale (OFS) of up to Rs 2,500 crore by existing shareholders. Olive Vine Investment will sell shares worth Rs 1,758 crore. Additionally, investors including International Finance Corporation and Kedaara Capital Growth Fund III LLP will sell shares valued at Rs 742 crore.

The company is backed by Olive Vine Investment, an affiliate of private equity giant Warburg Pincus, and plans to utilise the raised funds to bolster its capital base to support future growth and operational needs.

Currently, promoters hold a 59.32 per cent stake in Avanse Financial, with public shareholders, including International Finance Corporation, Kedaara Capital, and Alpha, owning the remaining 40.68 per cent. The Mumbai-based company is poised to enhance its capital structure to meet the increasing demands of its expanding business.