Avanse Financial Services Files DRHP For Rs 3,500 Cr IPO

Avanse Financial Services, an education-focused non-banking financial company (NBFC), has submitted preliminary papers to the Securities and Exchange Board of India (SEBI) for a Rs 3,500 crore initial public offering (IPO).

The IPO includes a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale (OFS) of up to Rs 2,500 crore by existing shareholders. Olive Vine Investment, an affiliate of private equity firm Warburg Pincus, will sell shares worth Rs 1,758 crore. Additionally, Kedaara Capital Growth Fund III LLP will divest Rs 400 crore, and International Finance Corporation (IFC) will offload shares valued at Rs 342 crore.

Proceeds from the IPO will be used to bolster Avanse's capital base for future growth needs.

Ranked as the second-largest education-focused NBFC in India by assets under management (AUM) as of March 31, 2024, Avanse offers a comprehensive range of education financing solutions. These include student loans for both domestic and international studies, as well as education infrastructure loans for private educational institutions in India.

The IPO is managed by Kotak Mahindra Capital Company, Avendus Capital, J.P. Morgan India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets.