Muthoot Finance's arm Belstar Microfinance files DRHP with SEBI for ₹1,300 crore IPO

According to the draught reddish herring prospectus (DRHP), the archetypal nationalist offering (IPO) of the Chennai-based institution comprises a ₹1,000 crore caller contented of equity shares and an offer-for-sale (OFS) of ₹300 crore by existing capitalist shareholders.

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In the Offer for Sale (OFS), Danish plus absorption steadfast MAJ Invest intends to divest shares valued astatine ₹175 crore, with consequent income by Arum Holdings Ltd ( ₹97 crore) and Augusta Investments Zero Pte Ltd ( ₹28 crore).

Maj Invest had archetypal invested successful Belstar Microfinance successful 2018 and again successful 2022.

Currently, Muthoot Finance, 1 of the promoters, possesses somewhat much than 66 percent ownership successful Belstar Microfinance.

The proceeds generated from the caller issue, valued astatine ₹760 crore, volition beryllium allocated towards gathering aboriginal superior requirements for onward lending, with the remaining sum earmarked for wide firm purposes.

Belstar Microfinance, an NBFC-MFI, extends a divers array of indebtedness products encompassing micro enterprise, tiny enterprise, user goods, festival, education, and exigency loans.

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Primarily, its lending exemplary revolves astir the 'self-help group' (SHG) model, constituting 57 percent of the full indebtedness portfolio arsenic of December 31, 2023.

For the nine-month play concluding successful December 2023, the microfinance steadfast recorded a nett of ₹235 crore, accompanied by a gross of ₹1,283 crore.

The book-running pb managers of the IPO are  ICICI Securities, Axis Capital, HDFC Bank, and SBI Capital Markets.

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Published: 05 May 2024, 03:48 PM IST