The Avanse Financial Services IPO is set to launch in December 2024, though the exact dates have not been announced yet. Here are the key details about the IPO:

IPO Details:

• Total Issue Size: ₹3,500 crore
  • Fresh Issue: ₹1,000 crore
  • Offer for Sale (OFS): ₹2,500 crore
• Face Value: ₹5 per share
• Listing: BSE and NSE
• Objects of the Issue:
  1. Proceeds from the fresh issue will be used to augment the company’s capital base.
  2. The OFS will allow selling shareholders to offload equity.

Company Overview:

• Sector: Education financing
• Business: Avanse Financial Services is a leading non-banking financial company (NBFC) focused on education loans in India. It offers:
  • Student loans (domestic and international), with a focus on STEM and MBA programs.
  • Loans for education infrastructure (such as schools and colleges) in Tier-II and smaller cities.
• Market Position: Second-largest education-focused NBFC in India by assets under management (AUM) as of FY24.
• AUM Distribution:
  • 78.28% – International student loans.
  • 2.71% – Domestic student loans.
  • 17.04% – Loans for educational institutions.

Financial Performance:

• FY24 Highlights:
  • Revenue: ₹1,728.81 crore
  • Net Profit: ₹342.40 crore
  • Net Profit Margin: 19.83%
  • Assets Under Management (AUM): ₹14,343.84 crore
• The company has improved asset quality with gross non-performing assets (Stage 3 loans) reduced to 0.43% in FY24 from 1.29% in FY22.

Promoter and Lead Managers:

• Promoter: Olive Vine Investment Ltd.
• Lead Managers: Kotak Mahindra Capital, J.P. Morgan, SBI Capital, Avendus Capital, Nomura, and Nuvama Wealth.

This IPO is expected to attract investors due to the company’s strong focus on the growing education sector and its robust financial performance. For further updates, keep an eye on announcements regarding the price band and bidding dates.