Asirvad Microfinance’s IPO consists of the issue of 1500 crore new equity shares to the public. The company will utilize the funds raised to augment its capital base to meet future business requirements.
Asirvad Microfinance Ltd IPO – Important Details
| Asirvad Microfinance IPO Date | NA |
| Asirvad Microfinance IPO Listing Date | NA |
| Asirvad Microfinance IPO Price | NA |
| Asirvad Microfinance IPO Lot Size | NA |
| Asirvad Microfinance IPO Total Issue Size | INR 1500 crores |
| Asirvad Microfinance IPO Basis of Allotment | NA |
| Asirvad Microfinance IPO Initiation of Refunds | NA |
| Asirvad Microfinance IPO Credit of Shares to Demat | NA |
| Asirvad Microfinance IPO Issue Type | Book Built Issue IPO |
| Asirvad Microfinance IPO Listing At | BSE,NSE |
Asirvad Microfinance IPO – Company Profile
Asirvad Microfinance is a non-banking finance company and microfinance institution that empowers low-income women by providing microfinance loans. Dedicated to inclusive growth, they serve the socially and economically underprivileged, fostering financial inclusion.
As a digitally enabled MFI, their automated loan processing, real-time API-based borrower validation, and integrated credit bureau analysis ensure swift and secure cashless disbursements. 100% digital onboarding and real-time reporting and analytics enhance decision-making and operational efficiency.
ESG-focused MFI is led by experienced management and governed by a 13-member Board, including eight independent directors. Robust committees ensure corporate governance. Critical and senior management brings hands-on experience for future growth opportunities.
Asirvad Microfinance Limited IPO – Fundamental Analysis
Asirvad Microfinance Ltd.’s financial performance leading up to its IPO shows robust growth in key areas but also highlights increasing financial leverage. Here’s a detailed analysis based on the provided financials:
Revenue Growth:
Asirvad Microfinance has demonstrated significant revenue growth, increasing from ₹10,529.70 million in 2021 to ₹17,151.95 million in 2023. This indicates a strong upward trajectory in top-line performance, reflecting successful business expansion.
Equity Development:
Equity has shown a notable increase, especially in 2023, rising to ₹15,440.08 million. This growth in equity underpins the company’s solid financial base and capacity for further expansion.
Expense Trends:
Expenses have increased in tandem with revenue, reaching ₹14,483.50 million in 2023. While rising expenses are expected with expanding operations, their proportionate increase in relation to revenue needs careful monitoring.
Profitability:
After a slight dip in 2022, the company’s profitability surged in 2023, with a Profit and Loss After Tax of ₹2,234.28 million. This demonstrates the company’s ability to not only generate revenue but also translate it effectively into profits.
Return on Net Worth (RoNW):
The RoNW has improved remarkably, jumping to 14.47% in 2023 from 1.53% in 2021. This significant increase indicates efficient utilization of shareholders’ equity in generating profits.
Earnings Per Share (EPS):
Diluted EPS has seen a dramatic increase, soaring to ₹12.84 in 2023. This suggests a strong growth in profitability on a per-share basis, which is favorable for current and potential shareholders.
Net Asset Value (NAV) per Equity Share:
NAV per share has increased consistently, reaching ₹246.49 in 2023, indicating a growth in the intrinsic value of the company.
Assets and Liabilities:
Total assets have almost doubled, indicating substantial growth and expansion. However, total liabilities have also significantly increased, reflecting the company’s reliance on external financing.
Debt Equity Ratio:
The rising Debt Equity Ratio, now at 5.10 in 2023, points to increased reliance on debt financing. This higher leverage ratio could imply greater financial risk, potentially impacting long-term sustainability.
Asirvad Microfinance IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 | ||
| Revenue(₹in millions) | 10,529.70 | 13,678.90 | 17,151.95 | ||
| Equity(₹ in millions) | 10,557.63 | 10,708.49 | 15,440.08 | ||
| Expenses (₹in millions) | 10,473.95 | 13,924.26 | 14,483.50 | ||
| Profit and Loss After Tax (₹ in millions) | 161.01 | 139.30 | 2,234.28 | ||
| RoNW (%) | 1.53 | 1.30 | 14.47 | ||
| Diluted EPS only (₹) | 1.01 | 0.87 | 12.84 | ||
| NAV per Equity Share (₹) | 198.04 | 200.87 | 246.49 | ||
| Total Assets (in millions) | 58,499.54 | 68,236.74 | 101,915.88 | ||
| Total Liabilities (in millions) | 47,941.91 | 57,528.25 | 86,475.8 | ||
| Debt Equity Ratio | 3.77 | 4.45 | 5.10 |
Asirvad Micro Finance IPO Peer Comparison
Asirvad Micro Finance displays competitive strengths with the highest RoNW at 14.47% and impressive EPS of ₹12.84. However, it faces stiff competition from Credit Access Grameen and Fusion Microfinance in revenue and NAV.
| Company | Total Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| AsirvadMicroFinance Limited | 17,592.76 | 2 | NA | 12.84 | 12.84 | 14.47 | 246.49 |
| Credit Access Grameen Ltd | 35,507.60 | 10 | 24.90 | 52.04 | 51.81 | 16.17 | 321.38 |
| Fusion Microfinance Limited | 17,999.70 | 10 | 13.85 | 43.29 | 43.13 | 16.67 | 231.39 |
| Satin Creditcare Network Limited | 17,615.45 | 10 | 7.15 | 33.79 | 32.30 | 13.81 | 225.83 |
| Spandana Sphoorty Financial Limited | 13,944.53 | 10 | 436.24 | 1.74 | 1.74 | 0.41 | 428.72 |
| Bandhan Bank Limited | 1,83,732.50 | 10 | 18.56 | 13.62 | 13.62 | 11.2 | 121.58 |
| Ujjivan Small Finance Bank Limited | 47,541.90 | 10 | 8.40 | 5.88 | 5.87 | 26.1 | 21.53 |
| Utkarsh Small Finance Bank Limited | 28,042.86 | 10 | 11.10 | 4.52 | 4.51 | 20.2 | 22.33 |
| Suryoda Small Finance Bank Limited | 12,811.00 | 10 | 21.70 | 7.32 | 7.32 | 4.9 | 149.28 |
Asirvad Microfinance Limited IPO Objective
The main objective of Asirvad Microfinance Limited’s IPO is to utilize the net proceeds to augment the company’s capital base to meet future business requirements. They aim to achieve the benefits of listing and enhance the visibility and the brand image.
Asirvad Microfinance Limited IPO Risks and Challenges
Asirvad Microfinance, facing heightened default risks in microfinance loans, grapples with AML compliance challenges. The reported net loss of INR 8.692 crore in Q2 2022, attributed to COVID-19, signals potential future losses amid business development and revenue challenges.
- Targeting women with an annual income of up to INR 0.03 crore for microfinance loans, their borrowers face higher default risks due to limited credit histories. Unsecured advances pose recovery challenges; reliance on non-traditional guarantees and joint liability group models adds uncertainty.
- In adhering to AML and anti-terrorism laws, potential KYC procedure lapses pose fraud and money laundering risks. Past regulatory scrutiny led to improvements, with ongoing vigilance crucial to preventing violations and safeguarding business reputation.
- They reported an INR 8.692 crore net loss for Q2 2022 due to COVID-19 impact. The company is spending considerable money on business development, which is expected to result in future losses. Revenue challenges, competition, and economic uncertainties pose risks affecting profitability and market dynamics.
Asirvad Microfinance IPO – Industry & Market Potential
Between Fiscal 2016 and 2018, NBFCs achieved a 15% CAGR in credit, facing challenges post-IL&FS default and during the pandemic. Fiscal 2023 saw a 16.2% growth, driven by retail and SME loans. CRISIL forecasts 14%-16% credit growth, with NBFCs expected to gain a 25% market share by fiscal year 2026.
The Indian microfinance industry demonstrated a robust 22% CAGR in portfolio outstanding from Fiscal 2016 to 2023, rebounding from pandemic challenges. CRISIL forecasts continued growth, anticipating an 18% increase in Fiscal 2024 and 15% in Fiscal 2025.
Microfinance institutions showcase resilience, recovering swiftly from crises like demonetization. Their profitability and bolstered capital during the pandemic reflect growth potential, proactive crisis management, social impact, and RBI’s regulatory support.
Asirvad Micro Finance IPO – Type of Offer
Asirvad Micro Finance’s IPO comprising fresh issues of 1500 crores of equity shares.
Asirvad Micro Finance IPO Offer Size
The offer size of Asirvad Micro Finance’s IPO is INR XXX wherein the company plans to release 1500 crore new equity shares to the public. The proceeds from this offering will be deployed to augment the company’s capital base to meet future business requirements.
Asirvad Microfinance Limited IPO Allotment Structure
Asirvad Microfinance Limited IPO allocation designates 75% to Qualified Institutional Buyers (banks, mutual funds, insurance), 15% to Non-Institutional Investors (corporates, high-value individuals), and 10% to Retail Individual Investors (individuals with smaller investments), which complies with SEBI regulations.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for an Asirvad Microfinance Limited IPO?
To apply for the Asirvad Microfinance IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for Asirvad Microfinance IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Asirvad Microfinance IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Asirvad Microfinance Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Asirvad Microfinance Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Asirvad Microfinance IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Asirvad Microfinance Limited IPO:
Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Asirvad Microfinance Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Asirvad Microfinance Limited IPO Offer Registrar
The registrar for the Asirvad Microfinance Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information of the registrar:
Link In time India Private Limited
C-101, 1stFloor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Maharashtra, India
Tel: +91 810811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Asirvad Microfinance Limited IPO FAQs
What is the allotment date of the Asirvad Microfinance Limited IPO?
The allotment date of the Asirvad Microfinance Limited IPO has not been announced by the company.
What is the price band of Asirvad Microfinance Limited IPO?
The price band of the Asirvad Microfinance Limited IPO has not been announced by the company.
What is the size of the Asirvad Microfinance Limited IPO?
Asirvad Microfinance Limited is set to launch an Initial Public Offering (IPO) involving issuing 1500 crore new equity shares to the public. The proceeds from this offering will be allocated towards augmenting the company’s capital base to meet future business requirements.
What is the listing date of the Asirvad Microfinance Limited IPO?
The listing date of the Asirvad Microfinance Limited IPO has not been announced by the company.
