Avanse Financial Services to Raise Rs 3,500 Crore through IPO

Avanse Financial Services Ltd is set to raise Rs 3,500 crore via an IPO, as per preliminary papers filed with Sebi. The IPO includes a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale by Olive Vine Investment and other stakeholders. Funds are aimed at expanding the company's capital base.

Avanse Financial Services Ltd is poised to raise Rs 3,500 crore through an initial public offering (IPO), according to preliminary papers filed with the Securities and Exchange Board of India (Sebi). The education-focused non-banking financial company aims to bolster its capital base to cater to future needs.

The IPO will feature a fresh issue of equity shares worth up to Rs 1,000 crore and an offer for sale valued at Rs 2,500 crore from current shareholders. Olive Vine Investment Ltd, an affiliate of private equity titan Warburg Pincus, will divest shares worth Rs 1,758 crore. Additional stakeholders, including Kedaara Capital Growth Fund III LLP and International Finance Corporation (IFC), will also sell significant shares.

Ranked as India's second-largest education-centric non-banking financial company by assets under management as of March 31, 2024, Avanse Financial Services offers a comprehensive range of educational financial products. The company provides both student loans and growth capital for educational institutions. Kotak Mahindra Capital Company Ltd, Avendus Capital, J.P. Morgan India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets will be the book running lead managers for the issue.

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