Avanse Financial Services plans Rs 3,500 crore IPO 

Avanse Financial Services Ltd, an education-focused non-banking financial company (NBFC), has filed preliminary papers with SEBI for an initial public offering (IPO) aiming to raise Rs 3,500 crore. The IPO comprises a fresh issue of equity shares up to Rs 1,000 crore and an offer for sale (OFS) up to Rs 2,500 crore by existing shareholders.

Promoted by Olive Vine Investment Ltd, an affiliate of private equity giant Warburg Pincus, Avanse intends to utilize the funds to strengthen its capital base for future expansion. The OFS includes shares worth Rs 1,758 crore from Olive Vine Investment, Rs 400 crore from Kedaara Capital Growth Fund III LLP, and Rs 342 crore from the International Finance Corporation (IFC).

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As of March 31, 2024, Avanse is ranked as the second largest education-focused NBFC in India by assets under management (AUM), according to Crisil. The company offers a comprehensive range of education financing solutions, including student loans for Indian students pursuing education abroad or domestically, and collateral-backed financing for private educational institutions in India.

The IPO will be managed by Kotak Mahindra Capital Company Ltd, Avendus Capital, J.P Morgan India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets as the book running lead managers.

This move underscores Avanse’s commitment to furthering its presence in the education finance sector and supporting the aspirations of students and educational institutions across India.