Avanse Financial Services IPO Highlights
Avanse Financial Services is going to launch its IPO. Its opening date is * November, 2024. It will close on yet to be announced. This is going to be a book-built issue. Through its first public offering (IPO), the company aims to collect about ₹3500 crores. The IPO will be a mixture of a fresh issue of * equity shares worth ₹1000 Cr and an offer for sale of * equity shares worth ₹2500 Cr. The face value of shares is ₹5 per equity share. The price band of Avanse Financial Services IPO is between ₹* to ₹ *
Avanse Financial Services IPO Detail
| IPO Opening and Closing Date | November *, 2024 to November *, 2024 |
| IPO Price Range | ₹ * to ₹ * Per Share |
| Face Value of Share | ₹ 5 Per Share |
| Net Issue Size Offered | * Equity Shares amounting up to ₹ 3500 Cr. |
| Fresh Issue | * Equity Shares up to ₹ 1000 Cr. |
| Offer For Sale | * Equity Shares amounting up to ₹ 2500 Cr. |
| Listing at | BSE & NSE |
| Issue Type | Book Built Issue IPO |
| Retail Allocation | 35% |
| IPO DRHP | Click Here |
| IPO RHP | Click Here |
Avanse Financial Services IPO, Tentative Date Schedule
| IPO Opening Date | To Be Announced |
| IPO Closing Date | To Be Announced |
| Allotment Date | To Be Announced |
| Refund Initiation | To Be Announced |
| Credit of Shares in Demat Account | To Be Announced |
| Listing Date | To Be Announced |
The Avanse Financial Services IPO will open on * November, 2024 and will close on * November, 2024. The allotment of Avanse Financial Services IPO will be finalised on * November, 2024. The listing date of Avanse Financial Services IPO on both BSE as well as NSE is fixed as * November, 2024.
Avanse Financial Services IPO GMP Today
Avanse Financial Services IPO GMP today is ₹00 as of 5 November, 2024.
Avanse Financial Services IPO Financials
| Period | Financial Year 2024 | Financial Year 2023 | Financial Year 2022 |
| Total Assets | 14343.84 | 9729.95 | 5453.015 |
| Total Revenue | 1728.81 | 990.23 | 508.541 |
| Total Expense | 1269.614 | 778.914 | 423.081 |
| EBITDA | 1355.54 | 764.46 | 372.22 |
| Profit After Tax | 342.4 | 157.71 | 63.207 |
| Company’s Net Worth | 3676.72 | 2149.72 | 1009.66 |
| Total Reserve & Surplus | 3550.801 | 2043.08 | 927.072 |
Company Financial Performance Indicators
| Key Performance Indicators | Value |
| ROCE | 3.4% |
| ROE | 12.81% |
| Price to Book Value | * |
| Total Borrowings (% of Total Capital) | 73.37% |
| Return on Net Worth | 9.31% |
| Debt to Equity Ratio (times) | 2.76 |
| After-Tax Profit Margin (%) | 19.8% |
| Net Interest Margin | 4.85% |
| Net Asset Value | ₹146 |
IPO Lot Size for Different Category of Investors:
| Application | Lot | Number of Shares | Amount (in ₹) |
| Retail Investor (Min. Lot) | 1 | – | ₹ |
| Retail Investor (Max Lot) | 13 | – | ₹ |
| Small HNI (Min. Lot) | 14 | – | ₹ |
| Small HNI (Max. Lot) | 67 | – | ₹ |
| Big HNI (Min. Lot) | 68 | – | ₹ |
Retail investors are eligible to submit bids for a minimum of one lot, containing * shares, amounting to ₹*. On the other hand, small HNI can apply for a minimum of 14 lots comprising of * shares amounting to ₹. The maximum limit for applying in this IPO for small HNI is 67 lots comprising of * shares amounting to ₹*.
Avanse Financial Services IPO, Investors Reserve Quota
| Shares Reserved for Institutional Investors | 75% of the Total Issue |
| Shares Reserved for Non-Institutional Investors | 15% of the Total Issue |
| Shares Reserved for Retail Individual Investors | 10% of the Total Issue |
Cash Flow Generated by the Company
| Particulars | FY 2024 | FY 2023 | FY 2022 |
| Net Cash Flow from Operating Activities | -34,950.19 | -35,325.20 | -14,904.82 |
| Net Cash Flow from Investing Activities | -430.17 | -371.69 | 372.52 |
| Net Cash Flow from Financing Activities | 40,517.19 | 40,314.99 | 16,597.29 |
| Net Increase/(Decrease) in Cash & Cash Equivalents | 5,136.83 | 4,618.10 | 2,064.99 |
Revenue generation from Domestic and International Markets
| Particulars | FY 2024 | FY 2023 | FY 2022 |
| Revenue from India | 1,842.97 | 669.38 | 278.93 |
| Revenue from Outside India | – | – | – |
| Total Revenue | 1,842.97 | 669.38 | 278.93 |
Credit Rating
| Rating Agency | FY 2024 Rating | FY 2023 Rating | FY 2022 Rating |
| CARE Ratings | AA- (Stable) | A+ (Positive) | A+ (Stable) |
| Brickwork Ratings | AA- (Stable) | A+ (Stable) | A+ (Stable) |
| ICRA Limited | A1+ (Positive) | – | – |
Product Mix Comparative Analysis
| Player | Student Loans – International | Education Institution Loans | Student Loans – Domestic |
| NBFC with Primary Focus on Student Loans | |||
| Avanse Financial | 78.28% | 17.04% | 2.71% |
| HDFC Credila | 100% | – | – |
| Auxilo Finserve | 95% | 5% | – |
| NBFC with a Primary Focus on Educational Institution Loans | |||
| Varthana Finance | 5.20% | 94.80% | – |
| Shiksha Financial | 9% | – | 91% |
Avanse Financial Services IPO Objectives
- To strengthen the capital base of the company.
- To sell some portion of existing shareholders to provide liquidity.
Avanse Financial Services IPO Strengths and Weaknesses
Strengths:
- Avanse is the second-largest education-focused NBFC in India by assets and profits.
- Assets under management have surged from ₹48.4 billion in 2022 to ₹133 billion in 2024.
- The company offers a variety of products, including student loans and loans to educational institutions.
- The company has a vast network of branches with 545 locations
- The loan default rate of the company is very low
- There has been a consistent growth in loan disbursements and profits since 2022.
Weaknesses:
- Avanse has a high dependence on the education sector, which makes it vulnerable to sector-specific risks.
- There is tough competition from larger, more established financial institutions.· A rapid expansion strategy could lead to operational inefficiencies and increased costs.
- The risk of interest rate fluctuations is always there.
- lack of product diversification due to concentration in student loans
- Regulatory changes in the NBFC and education financing sectors could impact the business of the company.
Management & Promoter Group of Avanse Financial Services IPO Ltd
Olive Vine Investment Ltd
Kedaara Capital Growth Fund III LLP
International Finance Corporation (IFC)
Lead Managers of Avanse Financial Services IPO
Kotak Mahindra Capital Company Limited
Avendus Capital Private Limited
J.P. Morgan India Private Limited
Nomura Financial Advisory and Securities (India) Private Limited
Nuvama Wealth Management Limited
SBI Capital Markets Limited
Registrar of Avanse Financial Services IPO
Link Intime India Private Limited.
Phone: (0) 810 811 6767
Email:avanse.ipo@linkintime.co.in.
Website: www.linkintime.co.in
Contact Details of Avanse Financial Services Limited
Avanse Financial Services Ltd.
4th Floor, E Wing, Times Square,
Andheri – Kurla Rd, Gamdevi, Marol,
Andheri East, Mumbai, Maharashtra 400059
Website: www.avanse.com/
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Note: This article is based on the information received from the company’s official documents, including the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP). For up-to-date information on the Grey Market Premium (GMP) for the Nisus Finance Services IPO, you may please check our Current GMP, where we will post the latest figures as soon as they are available.
Disclaimer: This article is for educational purposes only. We do not offer any advice on buying or selling securities. Please consult your financial advisor before investing in an IPO or any other securities to make sure that it suits your financial plans and risk tolerance.
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