Avanse Financial IPO Date, Review, Price and Key Information

Avanse Financial Services IPO is fully book build issue and total IPO size is ₹3500 crores. The offering includes a fresh issue worth ₹1000 crores and an offer for sale of ₹2500 crores.

The dates for the Avanse Financial Services IPO have not been announced yet.

The allotment process is expected to be finalized by [.]. The Avanse Financial Services IPO is scheduled to list on BSE, NSE, with a tentative listing date of [.].

The price band for the Avanse Financial Services IPO has not been announced yet.

Registrar for this IPO is Link Intime India Private Limited and lead managers for Avanse Financial Services IPO are 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.

IPO Schedule

IPO Open Date	-
IPO Close Date	-
IPO Allotment Date	-
Refund Initiation	-
Share credit in Demat	-
Listing Date	-

Key Details

Price Band	TBA
Lot Size	TBA
Face Value	₹5 Per Equity Share
Total Issue Size	₹3,500.00 Crores
Fresh Issue	₹1,000.00 Crores
OFS Issue	₹2,500.00 Crores
Issue Type	Fresh Issue and Offer for Sale
Listing At	BSE, NSE

Share Reservation

Investor Category	Shares Offered
QIB	50%
Retail	35%
NII/HNI	15%

About Avanse Financial Services Company

Avanse Financial Services, as of March 2024, is the second-largest education-focused NBFC in India by AUM. They offer a comprehensive suite of financial products, including education loans for students pursuing studies internationally and domestically, as well as growth capital for educational institutions.

Their AUM has grown significantly, reaching ₹13,303.1 crore in March 2024, with disbursements of ₹6,335 crore in FY24. Profit after tax for FY24 stood at ₹342.4 crore. The company's international student loan business comprises 78.28% of their total AUM, with loans disbursed to students across 49+ countries. Avanse also provides collateral-backed financing to 1,990 educational institutions in India.

Avanse employs a multi-channel distribution network, including education counselors, direct selling agents, and digital channels, with a physical presence in major education hubs. Avanse maintains strong asset quality with a GNPA ratio of 0.43% as of Fiscal 2024, and the highest Provision Coverage Ratio (69.77%) among its peers. The company also reported the highest return on average assets under management (3.12%) as of Fiscal 2024. The long-term credit rating for Avanse is AA-.

Avanse Financial Services Financial Details

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	14343.84	9729.95	5453.02
Revenue	1726.96	989.60	508.28
Profit After Tax (PAT)	342.40	157.71	63.21
Net Worth	3676.72	2149.72	1009.66
Reserves and Surplus	3550.81	2043.08	927.07
Total Borrowing	10084.77	7133.05	4023.33

₹ In Crore

Key Performance Indicator

Basic EPS (in ₹)	Return on Net Worth (RoNW)	Net Asset Value (NAV)	Debt-Equity Ratio	Return on Equity (ROE)	Return on Capital Employed (ROCE)
15.40	9.31%	146.00	2.76	12.81%	N/A

Offer Objectives

The company has two Employee Stock Option Schemes: ESOP 2019 and ESOP 2024. As of the Draft Red Herring Prospectus date, the ESOP pool consists of 13,653,598 options. 11,987,106 options were granted, with 2,341,230 forfeited/lapsed/cancelled, and 946,466 exercised. The total Equity Shares resulting from option exercises would be 8,699,410. A total of 4,091,524 options have vested, with 8,699,410 options outstanding.

ESOP 2019 aims to attract and retain talent, rewarding employees and providing investment opportunities. As of the Draft Red Herring Prospectus date, 11,987,106 Equity Shares were granted under ESOP 2019, with 4,091,524 vested, 946,466 exercised, 2,341,230 lapsed/cancelled, and 8,699,410 outstanding.

ESOP 2024, adopted in May/June 2024, aims to reward and motivate employees. A total of 4,000,000 options may be granted. The Nomination, Remuneration and Compensation Committee has approved grants of up to 2,996,950 options.

The company aims to utilize the Net Proceeds towards augmenting capital base to meet future capital requirements arising out of business and assets growth. Gross proceeds of the Fresh Issue are estimated at up to ₹1,000 crore. A portion of the proceeds will cover Offer Expenses, which are estimated at ₹[●] million.