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IPO Details

Issue Date

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Investment/lot

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Price Range

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Lot Size

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IPO Size

N/A

Start date

End date

Allotment of bids

Refund Initiation

Listing on exchange

The IPO of Asirvad Micro Finance Ltd consists of an entirely fresh issue with no offer for sale. The fresh issue of equity shares of face value of ₹10 each aggregates up to ₹1500 crore. The issue size of this IPO is also pegged at ₹1500 crore. The IPO is a 100% book-built offer.

The company plans to use the proceeds received from the IPO to augment its capital base and meet future business requirements.

Detail Information
Upper Price Band
TBA
Fresh Issue
Up to ₹1500 crore
Offer for Sale
NA
EPS in ₹ for FY 23
12.84
Investor Category Shares Offered
QIBs
Not less than 75% of the issue
Non-institutional Bidders
Not more than 15% of the issue
Retail Individual Bidders
Not more than 10% of the issue

With economic revival and unmet demand in rural regions, CRISIL MI&A Research expects the overall microfinance industry (MFI) portfolio size to reach ₹ 5451 billion by the end of fiscal 2026. CRISIL MI&A Research expects the MFI industry to log a 16% CAGR between fiscal 2023 and fiscal 2026.

Asirvad Micro Finance Ltd is a non-banking finance company MFI offering microfinance loans to low-income women. The company is the third-largest MFI in India in terms of assets under management (AUM) as of March 31, 2023 with microfinance loans comprising 92.59% of its AUM.

Largest and Most Diversified MFI in Terms of Geographical Spread, with Lowest Concentration Among Top Three States

Asirvad Micro Finance Ltd is the largest MFI in India in terms of geographic coverage as of March 31, 2023, with a presence in 450 districts in 22 states and four union territories. As of June 30, 2023, its microfinance loan portfolio had a presence in 395 districts across India.

Third-largest MFI in Terms of AUM, With Scalable Operations, Well-positioned to Capture Industry Tailwinds and Controlled Ticket Sizes Compared to Peers

As of March 31, 2023, the company is the third-largest MFI in India in terms of AUM. As of March 31, 2023, its AUM was ₹10040.893 crore, with 92.59% of its AUM attributable to microfinance loans.

Low-cost Liability Franchise, Backed by Diverse Borrowing Mix and Lender base; First NBFC-MFI to be Rated AA- by a credit Rating Agency

The company’s ability to access diversified sources of funding is a key contributor to its growth. In fiscal 2023, the company had the second lowest cost of borrowings among the MFI Peer Group in India. In Fiscal 2021, 2022, 2023 and in the three months ended June 30, 2022 and June 30, 2023, its average cost of borrowing was 9.97%, 11.20%, 9.01%, 2.59% and 2.65%, respectively.

  • Non-payment or default owing to the profile of borrowers in the microfinance industry, whom it services, may lead to increased levels of non-performing assets, related provisions and write-offs that may adversely affect its business, results of operations, cash flows and financial condition.

  • The quality of its portfolio may be impacted due to higher levels of non-performing assets (NPAs) and its business may be adversely affected if it’s unable to create adequate provisions for such higher levels of NPAs.

  • The company’s business is vulnerable to interest rate risk. Volatility in interest rates for both lending and treasury operations could have an adverse effect on its net interest income and net interest margin, thereby affecting its results of operations and cash flows.

Particulars (in Rs. crore)

Particulars (in Rs. crore)

Parameter Asirvad Micro Finance Ltd CreditAccess Grameen Ltd Fusion Micro Finance Limited Satin Creditcare Network Limited Spandana Sphoorty Financial Limited Bandhan Bank Limited Ujjivan Small Finance Bank Limited Utkarsh Small Finance Bank Limited Suryoday Small Finance Bank Limited
Total Revenue (in ₹ crore) for FY 23
1759.276
3550.760
1799.970
1761.545
1394.453
18373.250
4751.190
2804.286
1281.10
P/E for FY 23
NA
24.90
13.85
7.15
436.24
18.56
8.40
11.10
21.70
Return on Net Worth for FY 23 in %
14.47
16.17
16.67
13.81
0.41
11.2
26.1
20.2
4.9
EPS in ₹ (Basic) for FY 23
12.84
52.04
43.29
33.79
1.74
13.62
5.88
4.52
7.32

Link Intime India Private Limited is the registrar of Asirvad Micro Finance Ltd IPO. The book running lead managers of the IPO are:

  • JM Financial Limited
  • Kotak Mahindra Capital Company Ltd
  • Nomura Financial Advisory and Securities (India) Private Ltd
  • SBI Capital Markets Ltd

The company offers microfinance loans, loan against gold, MSME loans. The company’s AUM as of June 30, 2023 stood at ₹ 10140.576 crore, of which microfinance loans comprised ₹9310.447 crore, and loans against gold comprised ₹789.577 crore. As of June 30, 2023, the company had 1,415 active borrowers in its MSME loan portfolio.

Over the years, the company has rapidly scaled its operations while maintaining its asset quality. Its AUM has grown from ₹5984.618 crore as of March 31, 2021 to ₹7002.183 crore as of March 31, 2022 and further to ₹10040.893 crore as of March 31, 2023, at a CAGR of 29.53% between fiscal 2021 and fiscal 2023.

Asirvad Micro Finance Ltd is the largest MFI in India in terms of geographic coverage as of March 31, 2023. It’s also the third-largest MFI in India in terms of assets under management AUM as of March 31, 2023.

Parameter FY 23 FY 22 FY 21
Total Income (in ₹ crore)
1759.276
1411.890
1077.185
EBITDA (in ₹ crore)
974.744
627.492
499.168
EPS in ₹
12.84
0.87
1.01
Parameter FY 23 FY 22 FY 21
Net Cash Generated / used in operating activities (in ₹ crore)
(2384.934)
(150.234)
(267.554)
Net Cash Generated / (Used) in Investing Activities (in ₹ crore)
(317.486)
(67.427)
43.366
Net Cash Generated / (Used) from Financing Activities (in ₹ crore)
2459.828
314.706
(281.088)
Cash and Cash Equivalents as at the End of the Year/ Period (in ₹ crore)
549.921
792.513
695.468

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar - Link Intime India Private Limited. To check the status on the BSE website:

  • Visit the BSE website
  • Click on “Investor Services” and choose “Application Status Check”
  • Choose the issue type — Equity or Debt
  • Select the Issue Name from the drop-down
  • Enter your application number or PAN number
  • Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of Link Intime Private Ltd:

  • Visit the website of Link Intime Private Ltd
  • Choose ‘Public Issues’ from Investor Services dropdown
  • Choose the name of the company from ‘Select Company’ dropdown
  • Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
  • Click on Submit to check the status

Here are the steps to apply for Asirvad Microfinance Ltd IPO:

Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.

Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.

Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.

Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.

Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.

Asirvad Micro Finance IPO FAQs

The Asirvad Micro Finance Ltd IPO consists entirely of a fresh issue of equity shares. The issue size of the IPO is pegged at ₹1500 crore. It’s a 100% book-built offer with no offer for sale.

The exact dates of the IPO are not yet known. However, it’s expected to go live soon.

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