SEBI ‘finally’ approves Asirvad Micro Finance’s IPO

The capital markets regulator SEBI today has finally approved the long held initial public offering (IPO) of Asirvad Micro Finance. Asirvad Micro Finance is a subsidiary of Manappuram Finance.

Asirvad Micro Finance had filed a draft red-herring prospectus (DRHP) with the market regulator to raise Rs 1,500 crore from the public back in October. The IPO has a face value of Rs 10 per share and is a fresh issue of equity shares up to Rs 1500 crore with no offer for sale (OFS) component.

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The issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the issue shall be available for allocation to non-institutional bidders, and not more than 10% of the issue shall be available for allocation to retail individual bidders.

The company, in consultation with the lead bankers to the issue, may consider a further issue of equity shares on a private placement for cash consideration aggregating up to Rs 300 crore (“Pre-IPO Placement”). If such placement is completed, the fresh issue size will be reduced.

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.

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