Belstar Microfinance Files With SEBI For Rs 1,300 Crore IPO (Image Source: iStock)
Belstar Microfinance Limited, a subsidiary of Muthoot Finance, has taken a significant step towards going public by submitting a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi).
Fund Raise Through IPO
The microfinance company aims to raise Rs 1,300 crore through its initial public offering (IPO).
IPO Details
As per the details outlined in the draft red herring prospectus (DRHP), the IPO consists of a fresh issue of equity shares worth Rs 1,000 crore and an offer-for-sale (OFS) of Rs 300 crore by existing investor shareholders.
Offer For Sale (OFS)
In the Offer for Sale (OFS), Danish asset management firm MAJ Invest plans to divest shares valued at Rs 175 crore, followed by subsequent sales by Arum Holdings Ltd (Rs 97 crore) and Augusta Investments Zero Pte Ltd (Rs 28 crore).
When MAJ Invests First Invested In Belstar Microfinance?
MAJ Invest first invested in Belstar Microfinance in 2018.
When MAJ Invests Second Time Invested In Belstar Microfinance?
The company made another investment in 2022.
Muthoot Finance Stake In Belstar Microfinance
Currently, Muthoot Finance, a major promoter, holds slightly over 66 percent ownership in Belstar Microfinance.
Funds Raised From The Fresh Issue
The funds raised from the fresh issue, totaling Rs 760 crore, will primarily be utilized to meet future capital requirements for lending purposes, with the remaining amount designated for general corporate needs.
About Belstar Microfinance
Belstar Microfinance, an NBFC-MFI, offers a range of loan products including microenterprise, small enterprise, consumer goods, festival, education, and emergency loans.
Belstar Microfinance Quarter Result
For the nine-month period ending in December 2023, Belstar Microfinance reported a profit of Rs 235 crore and a revenue of Rs 1,283 crore.
