Belstar Microfinance Ltd, a subsidiary of Muthoot Finance, has filed a DRHP with SEBI to raise ₹1,300 crore. The company plans to raise the funds through IPO of equity shares with a face value ₹10 each.
The offer comprises a fresh issue of equity shares aggregating up to ₹1,000 crore (“Fresh Issue”) and an offer-for-sale of equity shares aggregating up to ₹300 crore (“Offer for Sale”), a statement issued here said.
The company proposes to utilise the net proceeds of the fresh issue to meet future capital requirements towards onward lending, estimated to be ₹760 crore in FY 2025, and the balance amount towards general corporate purposes.
The company offers a range of loan products, such as micro enterprise, small enterprise, consumer goods, festival, education and emergency loans.
The offer-for-sale comprises equity shares aggregating up to ₹175 crore by MAJ Invest Financial Inclusion Fund II K/S; up to ₹97 crore by Arum Holdings Ltd; and up to ₹28 crore by Augusta Investments Zero Pte Ltd.
ICICI Securities Ltd, Axis Capital Ltd, HDFC Bank Ltd and SBI Capital Markets Ltd are the book-running lead managers of the IPO issue.
According to the CRISIL report, Belstar Microfinance Ltd is the ninth-largest NBFC microfinance institution in India in terms of assets under management as of December 31, 2023. It is one of the few NBFC-MFIs that focus on the lending model or the“self-help group” model. It is also one of the top 10 NBFC-MFI players, with a relatively strong credit rating of “AA” and a stable outlook from Crisil.
The company’s operations are spread across 19 states and union territories, serving approximately 2.67 million customers.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.