Avanse Financial Services, headquartered in Mumbai and supported by Warburg Pincus, Kedaara Capital, and IFC, has submitted preliminary documents to SEBI on Friday (21 June, 2024) for an IPO to raise Rs 3,500 crore.
If Avanse’s plans come to pass, it might be the first time an education-focused NBFC has been listed in India.
The IPO consists of a fresh issue size of Rs 1,000 crore and an OFS (offer for sale) by Warburg Pincus, Kedaara Capital, and IFC for Rs 2,500 crore.
As part of the Offer for Sale (OFS), the promoter group Olive Vine Investment Ltd., an affiliate of Warburg Pincus, will sell shares valued at Rs 1,758 crore.
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Additionally, International Finance Corp. and Kedaara Capital Growth Fund III LLP plan to offload shares worth Rs 342 crore and Rs 400 crore, respectively.
The book-running lead managers for this offering include Kotak Mahindra Capital Co., Avendus Capital Pvt., JPMorgan India Pvt., Nomura Financial Advisory and Securities (India) Pvt., Nuvama Wealth Management Ltd., and SBI Capital Markets Ltd.
About Avanse Financial Services
Avanse provides educational loans for students and offers growth capital to educational institutions through infrastructure financing.
Additionally, it extends loans and services to Indian students and professionals studying both domestically and internationally. It also offers collateral-backed financing to private educational institutions in India.
As per the DRHP, Avanse plans to utilize the net proceeds from the IPO to strengthen its capital base, and meet future capital needs resulting from business and asset expansion.
Also Read: SEBI Modifies IPO Call Auction Rules, Adds Surveillance Measures for Stock Exchanges
Last year it was disclosed that Avanse was also seeking external investors, aiming to raise approximately Rs 1,000 crore in primary capital. Later in March, Middle East investor Mubadala spearheaded the capital infusion.
In March 2019, Wadhavan Global Capital Group agreed to sell 80 percent of Avanse Financial Services to Warburg Pincus. IFC has been involved since 2013. In January 2023, Kedaara Capital invested Rs 800 crore into the company.
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Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing.
