Asirvad Micro Finance IPO: Listed NBFC Manipuram Finance’s subsidiary Asirvad Micro Finance’s proposed Rs 1,500 crore initial public offering (IPO) has been put on “hold” by capital markets regulator SEBI.
However, the Securities and Exchange Board of India (Sebi) did not clarify the reason. Following the development, shares of Manapuram Finance fell 7.45 per cent to Rs 163.40 on the BSE on Wednesday.
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Earlier in October 2023, Ashirwad Micro Finance filled preliminary documents with SEBI to raise 1,500 crores through an initial public offering.
According to the Draft Red Herring Prospectus (DRHP), The offering is an issue of entirely new equity shares, without an offer for sale (OFS) component.
Without disclosing the reason, Sebi said it has “withheld the issue,” an update showed on the regulator’s website on Wednesday. the details were updated on 5th January. SEBI usually gives its observations on IPO papers within 30 days.
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According to the draft documents, the proceeds from the issue are proposed to be used to increase the company’s capital base to meet future business requirements.
Beginning its journey in 2008 with two branches in Tamil Nadu, Aashirwad Micro Finance has expanded its reach across India over the years. It is present in 22 states and 4 union territories through a network of 1,684 branches as of March 31, 2023.
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As of March 31, 2023, it serves 3.25 million active borrowers in its microfinance portfolio. It also offers loans against gold and provides loans to MSMEs.
In the financial year 2022-23, Ashirwad Micro Finance financial year 2021-22 Rs. 7,002.18 crore to Rs 10,040.89 crore in assets under management (AUM). Its profit after tax (PAT) increased to Rs 218.13 crore in FY22-23 from Rs 15.26 crore in FY21-22.
With PTI Inputs)
