Asirwad Microfinance gets IPO approval from SEBI

30 Apr 2024 , 02:50 PM

Manappuram Finance shares saw a robust surge of approximately 5%, reaching ₹207 per share in the afternoon of April 30, following the news that its subsidiary Asirwad Microfinance has received the green light from SEBI to proceed with an initial public offering (IPO).

The non-banking finance company (NBFC) submitted an addendum to the proposed ₹1,500-Crore IPO of Asirvad Micro Finance to SEBI on February 16.

Originally, Asirvad Micro Finance had filed a Draft Red Herring Prospectus (DRHP) with SEBI on October 5, 2023. However, SEBI had put the IPO on hold in January 2024.

Asirvad Micro Finance, established in 2008 with just two branches in Tamil Nadu, has since expanded its footprint to encompass 22 states and 4 union territories, boasting a network of 1,684 branches. The company serves a substantial clientele of 3.25 million active borrowers in the microfinance sector, which constitutes the majority of its assets under management. Additionally, it provides services for loans against gold and MSME loans.

According to reports, SEBI had raised concerns regarding the IPO, with two out of three queries already addressed, and the third anticipated to be resolved within 15-30 days.

The IPO is expected to feature a face value of ₹10 per share and a fresh issue of equity shares of up to ₹1,500 Crore, with no offer for sale component, as per the report.