New Delhi: Bellstar Microfinance Ltd, the microfinance arm of Muthoot Finance, on Sunday filed preliminary papers with capital markets regulator Sebi to raise Rs 1,300 crore through an initial public offering (IPO).
The Chennai-based entity's IPO is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale (OFS) worth Rs 300 crore by Investo shareholders, according to the draft red herring prospectus (DRHP).
As a part of the OFS, Danish asset management firm MAJ Invest aims to sell shares worth Rs 175 crore, followed by Arum Holdings Ltd (Rs 97 crore) and Augusta Investments Zero Pte Ltd (Rs 28 crore).
Major Invest first invested in Belstar Microfinance in 2018 and again in 2022.
Currently, Muthoot Finance, one of the promoters, holds more than 6 percent stake in Belstar Microfinance.The proceeds from the fresh issue of Rs 760 crore will be used to meet future capital requirements for further lending and the remaining amount will be used for general corporate purposes.
Belstar Microfinance, a Non-Banking Finance Company – Micro Finance Institute (NBFC-MFI), offers a wide range of loan products such as micro enterprises small enterprises, consumer goods, festival, education and emergency loans.
Also, its loan model primarily focuses on 'self-help groups' (SHG model), which accounts for 57 per cent of the total loan portfolio as of December 31, 2023.
For the nine months ending December 2023, the microfinance firm posted a profit of Rs 235 crore on revenue of Rs 1,283 crore.
ICICI Securities, Axis Capital, HDFC Bank and SBI Capital Markets have been appointed as book running lead managers to manage the public issue of the company.
The Chennai-based entity's IPO is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale (OFS) worth Rs 300 crore by Investo shareholders, according to the draft red herring prospectus (DRHP).
As a part of the OFS, Danish asset management firm MAJ Invest aims to sell shares worth Rs 175 crore, followed by Arum Holdings Ltd (Rs 97 crore) and Augusta Investments Zero Pte Ltd (Rs 28 crore).
Major Invest first invested in Belstar Microfinance in 2018 and again in 2022.
Currently, Muthoot Finance, one of the promoters, holds more than 6 percent stake in Belstar Microfinance.The proceeds from the fresh issue of Rs 760 crore will be used to meet future capital requirements for further lending and the remaining amount will be used for general corporate purposes.
Belstar Microfinance, a Non-Banking Finance Company – Micro Finance Institute (NBFC-MFI), offers a wide range of loan products such as micro enterprises small enterprises, consumer goods, festival, education and emergency loans.
Also, its loan model primarily focuses on 'self-help groups' (SHG model), which accounts for 57 per cent of the total loan portfolio as of December 31, 2023.
For the nine months ending December 2023, the microfinance firm posted a profit of Rs 235 crore on revenue of Rs 1,283 crore.
ICICI Securities, Axis Capital, HDFC Bank and SBI Capital Markets have been appointed as book running lead managers to manage the public issue of the company.
