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Asirvad Micro Finance, the subsidiary of listed NBFC Manappuram Finance, filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise funds for its initial public offering.
The IPO has a face value of ₹10 per share and is a fresh issue of equity shares up to ₹1,500 crore with no offer for sale (OFS) component.
The issue is being made through the book-building process, wherein not less than 75 per cent of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15 per cent of the issue shall be available for allocation to non-institutional bidders, and not more than 10 per cent of the issue shall be available for allocation to retail individual bidders.
As per the DRHP, the net proceeds from the fresh issue will be used to augment the capital base of the company to meet future business requirements and plan to be deployed in FY24.
Asirvad Micro Finance embarked on its journey in 2008 with just two branches in Tamil Nadu. It has expanded its reach across the country with a network of 1,684 branches as of March 31, 2023, which covers 450 districts. As of March 31, 2023, it had 3.25 million active borrowers in its microfinance portfolio, which constitutes the majority of its assets under management. It also caters to loans against gold and provides MSME loans.
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