Asirvad Micro Finance- Backed by Manappuram Finance Files DRHP for Rs 1500 Crore IPO

5 Oct 2023 , 11:12 AM

Asirvad Micro Finance, a subsidiary of the well-known NBFC (Non-Banking Financial Company) Manappuram Finance, has taken a significant step towards raising capital by filing a Draft Red Herring Prospectus (DRHP) with the Securities Exchange Board of India (SEBI). The company aims to raise Rs 1500 crore through a fresh issue of shares. This move is set to bolster its capital base and support its continued expansion and outreach in the microfinance sector.

Manappuram Finance’s Strategic Acquisition:

In February 2015, Manappuram Finance strategically acquired a substantial majority stake in Asirvad Micro Finance. This acquisition was part of Manappuram’s diversification strategy, which has since proven to be a successful venture. Asirvad Micro Finance operates as a Chennai-based microfinance institution with a significant national presence.

Utilization of IPO Proceeds:

The net proceeds from the IPO will be instrumental in augmenting Asirvad Micro Finance’s capital base, enabling the company to further its mission in providing microfinance solutions to underserved segments of the population. Additionally, the funds will be allocated for general corporate purposes, facilitating sustainable growth and expansion.

Widespread Outreach:

Asirvad Micro Finance has made a significant impact, serving a vast customer base of 3.2 million borrowers. With a dedicated team of 15,784 employees, the company disbursed a total of Rs 19,248 crore. Its nationwide presence includes 1,684 branches across 391 districts in 22 states and 3 union territories, ensuring that microfinance services reach even remote areas.

Mission of Empowerment:

Founded in 2008 by SV Raja Vaidyanathan, Asirvad Micro Finance has been on a mission to empower women and individuals from low-income groups by providing them with ‘Income Generating Product’ Loans. These loans have played a pivotal role in helping beneficiaries achieve and maintain financial stability.

Impressive Financial Performance:

As per its FY22-23 annual report, Asirvad Micro Finance has managed assets worth an impressive Rs 10,040.89 crore. The company reported a substantial profit after tax of Rs 218.13 crore, demonstrating remarkable growth compared to the previous fiscal year. These financial figures underscore the company’s commitment to financial inclusion and its effective execution of microfinance operations.

IPO Management:

The IPO is being managed by renowned merchant bankers, including JM Financial, Kotak Mahindra Capital, Nomura Financial Advisory and Securities, and SBI Capital Markets. Link Intime India Private Limited has been appointed as the registrar for the IPO, ensuring a seamless and efficient process.