Avanse Financial Services Limited, a prominent player in the education-focused non-banking financial company (NBFC) sector, is preparing to launch its much-anticipated Initial Public Offering (IPO) worth ₹3,500 crores. This offering includes a fresh issue component of ₹1,000 crores and an Offer for Sale (OFS) segment of ₹2,500 crores. With a face value of ₹5 per share, the IPO aims to strengthen the company’s financial base and support its future growth initiatives.
Founded with the vision of bridging the education financing gap in India, Avanse Financial Services has emerged as a significant entity in this niche market. According to the latest CRISIL MI&A report, Avanse ranks as the second-largest education-centric NBFC in India in terms of Assets Under Management (AUM) as of March 2024. It has also achieved the second-highest disbursements and profits among its peers in the fiscal year 2023-24. The company’s broad product portfolio includes education loans for students, covering both domestic and international studies, as well as growth capital for educational institutions through infrastructure financing. This comprehensive approach positions Avanse as a key enabler for students and educational bodies across the country.
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The financial performance of Avanse has been impressive, with a notable 75% increase in revenue and a 117% rise in Profit After Tax (PAT) in the financial year ending March 2024 compared to the previous year. This rapid growth reflects the expanding demand for education loans and the company’s successful strategy in tapping into this market. The company’s AUM has surged to ₹12,000 crores, showcasing its robust portfolio and consistent expansion.
Avanse operates through a wide-reaching distribution network, servicing 545 locations across India. It leverages a combination of physical branches and a strong digital footprint to cater to a diverse clientele. The company’s network includes 19 branches and sales offices supported by 215 sales team members, alongside 320 education advisors and 452 direct sales agents (DSAs). Additionally, its digital acquisition channel has been a significant growth driver, utilizing online marketing strategies and customer referrals to reach more students and educational institutions.
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The upcoming IPO is expected to fuel further expansion by enhancing Avanse’s capital base. The funds raised will primarily be used to support the company’s future business growth and meet its financial requirements. The registrar for the IPO is Link Intime India Private Ltd, and prospective investors can access the Draft Red Herring Prospectus (DRHP) through the SEBI website.
As Avanse Financial Services gears up for this landmark IPO, investor interest is likely to be high, given the company’s strong market position, impressive financial growth, and pivotal role in the burgeoning education finance sector in India. The offering marks a significant step for the firm, setting the stage for its continued expansion and reinforcing its status as a leader in education financing.