Manappuram Finance shares rally 5% on Sebi nod to IPO of subsidiary Asirvad Micro Finance
Manappuram Finance shares surged 5.4% to a 52-week high of Rs 207.30 following news of subsidiary Asirvad Micro Finance receiving Sebi approval for an IPO. The IPO, filed last October, will follow a book-building process with allocation to various investor categories.
Shares of rose 5.4% to a 52-week high of Rs 207.30 in Tuesday’s trade after subsidiary got a nod from Sebi to raise funds through an IPO.Asirvad Micro Finance had filed IPO papers in October last year. The issue will be made through the book-building process, wherein more than 75% of the offer will be available for allocation to qualified institutional buyers, up to 15% for the non-institutional bidders, and up to 10% for the retail investors.
The IPO has a face value of Rs 10 per share and is a fresh issue of equity shares of up to Rs 1500 crore with no offer for sale (OFS) component. The net proceeds will be used to augment the capital base of the company to meet future business requirements.
JM Financial Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited, and SBI Capital Markets Limited are the book-running lead managers for the IPO.
Asirvad Micro Finance is India’s third largest NBFC microfinance institution (MFI) in terms of assets under management and number of clients. As of March 31, 2023, it caters to 32.5 lakh active borrowers in the microfinance portfolio that constitutes a majority of its assets under management.
The MFI offers microfinance loans to low-income women, servicing and empowering an unbanked population to the socially and economically underprivileged.
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