The company is waiting for the green signal for the IPO at Rs. 1000 crores of new shares are being sold

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Avance Financial Services IPO: Non-banking financial company Avance Financial Services Limited is about to have an IPO. The company has filed preliminary documents with SEBI for the IPO. The company through this IPO raised Rs. 3,500 crore will be collected. Avance, a company promoted by Olive Wine Investments Ltd, an affiliate of private equity firm Warburg Pincus, proposes to use the money to increase its capital base for future needs.

IPO details

Initial share sale at Rs. Up to 1,000 crore new shares will be issued. Apart from this, there is also an Offer for Sale (OFS) of up to 2,500 crores. Under OFS, Olive Vine Investments Rs. 1,758 crore to sell shares, Kedra Capital Growth Fund-3 LLP will sell Rs. 400 crore shares and International Finance Corporation (IFC) will sell Rs. 342 crore shares will be sold. Let us tell you that in March 2019, Warburg Pincus entered into a definitive agreement to buy 80 percent stake in Avance Financial Services from Wadhawan Global Capital Group.

Avance Financial Services is the second largest education-focused non-banking financial company (NBFC) in India by assets under management (AUM) as of March 31, 2024, according to a CRISIL report. The company offers education loans and other types of loans to students.

Financial condition of Avance Financial

As on March 31, 2022, the Company’s Assets Under Management i.e. AUM stood at Rs. 48,35.6 crore, which increased to Rs. 8646 crore has been reached. At the same time, it reached Rs 13,303 crore by March 31, 2024. The CAGR increased by 65.86 percent between March 31, 2022 and March 31, 2024.

Talking about the total revenue, it increased to Rs 1729 crore in FY 2024. In FY 2023 it will be Rs. 990 crores. While in FY 2022 it was Rs 508.5 crore. Talking about the net profit, in FY 2024 it will be Rs. 342.4 crores. A year ago it was Rs 158 crore.

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