Avanse Financial Services Limited is coming up with an IPO consisting of a fresh issue of shares worth INR 1000 crores and an offer to sell existing shares worth INR 2,500 crores. The company aims to strengthen capital, cover offer expenses, and enhance the brand through stock listing. 

Avanse Financial Services IPO – Important Dates 

Read more about Avanse Financial Services Limited IPO GMP

Avanse Financial Services Limited IPO – Company Profile 

Avanse Financial Services, India’s second-largest education-focused NBFC by assets, offers a comprehensive education financing portfolio, including student loans (domestic and international) and infrastructure loans for private educational institutions. 

They offer international and domestic education loans, institution financing, and value-added services. Avanse supports students with flexible repayment options and rapid processing, fostering access to education and infrastructure development across India. 

Operating pan-India with a hybrid network, Avanse utilizes branches, digital channels, education counselors, and DSAs to provide wide-reaching student and institution loan services, optimizing distribution for education-focused financial support. 

Avanse Financial Services Ltd IPO Fundamental Analysis 

Avanse Financial Services Limited’s financial analysis reveals a mixed performance. Revenue has shown a strong upward trend, with increased profitability, improved EPS, and higher RoNW, reflecting business growth, asset expansion, and investor confidence. 

• Revenue Trend: The revenue increased from ₹5,082.84 millions in March 2022 to ₹9,895.97 millions in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 17,269.60 million. 
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹632.07 million in March 2022 to ₹3,424.03 million by March 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹3.78 in March 2022 to ₹15.05 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has increased from 6.26% to 9.31%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. 

Check out the other upcoming IPOs this month:

Avanse Financial Services IPO Financial Analysis 

Avanse Financial Services Limited IPO Peer Comparison 

Operating in a niche education-focused NBFC sector, Avanse stands out with unique customer targeting, loan repayment patterns, and underwriting; making direct comparisons is challenging due to few unlisted competitors and differing bank loan portfolios. 

Avanse Financial Services Ltd IPO Objective 

The main objective of Avanse Financial Services Limited is to strengthen capital, cover offer expenses, and enhance the brand through stock listing. 

Avanse Financial Services IPO Risks And Challenges 

Avanse Financial Services Limited’s risk includes regulatory investigations involving former promoters, dependence on substantial capital with potential financing disruptions, and a competitive pan-India distribution network leveraging education counselors for student loans. 

• Ongoing regulatory investigations involving their former promoters by enforcement agencies, including the Enforcement Directorate, may negatively affect their business and promoter-held equity shares and potentially impact the market value of their equity shares. 

• Their business heavily depends on substantial capital, and any disruptions in financing costs or availability could negatively impact their operations, financial condition, cash flow, and overall business results. 

• Their pan-India distribution network comprises counselors, aggregators, direct selling agents, and in-house teams. It facilitates student loans and offers a competitive advantage through strong relationships with education counselors in the international education sector. 

Avanse Financial Services Ltd IPO – Industry & Market Potential 

Overseas-education loans in India grew at a 32.8% CAGR from March 2019 to December 2023, reaching ₹947 billion. This growth is expected to continue, with a 26-27% CAGR projected between 2023 and 2028, driven by rising education costs. 

The Indian education sector, valued at ₹13.5-14.0 trillion in fiscal 2024, grew at a 9% CAGR from 2018-2024. It’s expected to increase by 12-13% CAGR from 2024-2029, driven by rising demand, e-learning, and policy changes. 

The domestic higher education market, valued at ₹3.9 trillion in fiscal 2024, grew at an 8% CAGR from 2018-2024. It’s expected to grow at 11-13% CAGR from 2024-2029, driven by demographic trends, government policies, and rising aspirations. 

Avanse Financial Services Limited IPO – Type of Offer 

Avanse Financial Services Limited plans a fresh issue of shares, seeking INR 1000 crores to strengthen capital, cover offer expenses, and enhance the brand through stock listing. Additionally, the company proposes an offer to sell existing shares worth INR 2,500 crores. 

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1000 crores. The company intends to utilize the proceeds from the fresh issue to strengthen capital, cover offer expenses, and enhance the brand through stock listing.
2. Offer for sale: Avanse Financial Services Limited is offering to sell existing shares worth INR 2,500 crores. The following are the details of the existing shareholder, who is also the promoter selling the shares: 

Avanse Financial Services IPO Offer Size 

The offer size of Avanse Financial Services Limited is INR 3,500 crores, consisting of a fresh issue of shares worth INR 1000 crores and an offer to sell existing shares worth INR 2,500 crores. The company aims to strengthen capital, cover offer expenses, and enhance the brand through stock listing. 

Avanse Financial Services Limited IPO Allotment Structure 

Avanse Financial Services Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% 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 35% 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 Avanse Financial Services IPO?

To apply for the Avanse Financial Services Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Avanse Financial Services Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Avanse Financial Services Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After 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 do you check Avanse Financial Services IPO Allotment Status?

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 the 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 Avanse Financial Services Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Avanse Financial Services Limited 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, we request you contact our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Avanse Financial Services Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Avanse Financial Services Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Avanse Financial Services Ltd IPO Offer Registrar

The registrar for the Avanse Financial Services Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly. 

Contact information for the registrar: 

Link Intime India Private Limited

C-101, 1st Floor, 247 Park

L.B.S. Marg, Vikhroli West

Mumbai 400 083

Maharashtra, India

Tel: +91 810 811 4949

E-mail: [email protected]

Website: www.linkintime.co.in 

Avanse Financial Services IPO – FAQs