Avanse Financial Services has refiled its draft red herring prospectus (DRHP) for an initial public offering (IPO) of INR 3,500 crore, following its return by the Securities and Exchange Board of India (SEBI).
The company’s board and IPO committee approved the updated DRHP on July 30 and July 31, respectively, with the refiling completed on July 31.
SEBI had previously returned the DRHP on July 25 due to non-compliance with Regulation 7(1)(a) of SEBI ICDR Regulations, 2018. This regulation requires companies to obtain in-principle approval from one or more stock exchanges for listing and to designate one as the primary exchange.
Avanse’s IPO plans remain unchanged with a fresh issue of shares worth INR 1,000 crore and an offer for sale (OFS) component of shares worth up to INR 2,500 crore. The funds from the IPO will be used to bolster the company’s capital base and support its business expansion efforts.
The OFS will involve significant share sales by major stakeholders: Olive Vine Investment, an affiliate of Warburg Pincus, will offload shares worth up to INR 1,758 crore; International Finance Corporation (IFC) will sell shares worth up to INR 342 crore; and Kedaara Capital will divest shares worth up to INR 400 crore.
Avanse plans to list its shares on the BSE and NSE, with in-principle approvals already secured from both exchanges.
This move comes amid a robust IPO market in India, with several new-age tech companies also gearing up for public listings. Notably, Ola Electric’s IPO opened for subscription today, and Unicommerce and FirstCry are set to debut on August 6.
