Avanse Financial Services Refiles DRHP For INR 3,500 Cr IPO

Days after the Securities and Exchange Board of India (SEBI) returned its draft red herring prospectus (DRHP), Avanse Financial Services has refiled its IPO papers.

The non-banking financial company (NBFC) said that its board and IPO committee met on July 30 and July 31, respectively, to approve the refiling. The company then refiled the IPO papers on July 31.

“We wish to inform that the Board and the IPO Committee… have approved the re-filing of the Company’s draft red herring prospectus with relevant updated information, ensuring compliance with the requirements under the SEBI ICDR Regulations,” it said. 

SEBI returned Avanse’s DRHP on July 25, citing “non-compliance with Regulation 7(1)(a) of SEBI ICDR Regulations, 2018”.

The aforementioned section mandates that the company looking to get listed should ensure that it has applied to one or more stock exchanges to seek an in-principle approval for listing of its specified securities on such stock exchanges and has chosen one of them as the designated stock exchange.

Besides the rectification of the aforementioned issue, the company’s IPO plans remain unchanged. 

Avanse’s IPO will comprise a fresh issue of shares worth INR 1,000 Cr and an offer for sale (OFS) component of shares worth up to INR 2,500 Cr. It plans to use the IPO proceeds from the public offering to increase its capital base to fuel further expansion of its business.

The OFS will see Avanse’s promoter group Olive Vine Investment, an affiliate of Warburg Pincus, offload shares worth up to INR 1,758 Cr. International Finance Corporation (IFC) and Kedaara Capital will sell shares worth up to INR 342 Cr and INR 400 Cr, respectively.

Avanse shares will be listed on the BSE and the NSE. The DRHP mentioned that the company has received in principle approvals from both the bourses. 

The development comes at a time when the country’s IPO market is booming. A number of new-age tech companies are also looking to cash in on the opportunity and list on the bourses this year. For instance, three startups – Ola Electric, Unicommerce and FirstCry – will make their public market debut in August.

While Ola Electric’s IPO opened for subscription today, those of Unicommerce and FirstCry will open on August 6.

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