Asirvad Micro Finance, a subsidiary of Manappuram Finance, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Thursday, seeking to raise ₹1,500 crore ($20.3 million) through an initial public offering (IPO). The company also eyes a ₹300 crore ($4.06 million) private placement, aiming to strengthen its capital for future requirements.
The microfinance institution, originally founded by SV Raja Vaidyanathan in 2008 and subsequently taken over by Manappuram Finance for ₹48.63 crore ($6.59 million) in February 2015 under the leadership of V P Nandakumar, plans to issue equity shares at ₹10 each.
The company's journey has seen significant growth since its inception. From its start, it now operates in 22 states and 4 Union Territories across 1684 branches in India. Asirvad Micro Finance reported an Assets Under Management (AUM) of Rs 10,040.89 crore ($1.36 billion) and a Profit After Tax (PAT) of Rs 218.13 crore ($29.6 million) in the fiscal year 2022-23.
Asirvad's customer base primarily consists of low-income women in rural and semi-urban India. It offers 'Income Generating Product' Loans to approximately 3 million customers. This service expansion was facilitated after securing a $15 million loan from WorldBusiness Capital in 2021.
Manappuram Finance, the parent company of Asirvad Micro Finance, provides services including gold loans to retail, SME, and commercial customers. Its stock opened at ₹144.75 on Thursday.
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