• Invest
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Currency
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
  • Platform
    Product Suite
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Equity Screeners
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    SWP Calculator
    CAGR Calculator
    Simple Interest Calculator
    ELSS Calculator
    Step up SIP Calculator
    All Calculators
    Product Suite
    Features and Tools
    Calculators
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
  • Market
    Stocks
    Share Market Today
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indian Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Stocks
    Indices
    Mutual Funds
    IPO
  • Learn
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Quarterly Results
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Commodities
    Currency
    Futures & Options
    Derivatives
    Margin Trading
    Events
    Budget 2025
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2025
    Resource
    Investing Guide
    Events
  • Partner
    Business Associates
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement

IPO Details

Issue Date

--

Investment/lot

--

Price Range

--

Lot Size

--

IPO Size

N/A

Start date

End date

Allotment of bids

Refund Initiation

Listing on exchange

Avanse Financial Services Limited IPO is an IPO of ₹3,500 crores. It consists of an offer for sale of ₹2,500 crores and a fresh issue of ₹1,000 crores. The shares will be allotted on a date TBA. The credit of shares to the demat account will take place on a date TBA and the initiation of refunds will take place on a date TBA.

  • Offer expenses.
  • Means of finance.
  • Interim use of net proceeds.
  • Bridge financing facilities.
  • Monitoring of utilisation of funds.
  • Variation in objects.
  • Other confirmations.
Detail Information
Upper Price Band (₹)
TBA
Existing Shares to be Sold
Aggregating up to ₹2500 crores
Fresh Issue
Aggregating up to ₹1000 crores
EPS (₹) For the year ended March 31, 2024
15.40
QIBs Share Offered
Not more than 50% of the Issue
Non-Institutional Bidders (NIBs)
Not less than 15% of the Issue
Retail Individual Bidders
Not less than 35% of the Issue

Despite the banking system dominating financial services. NBFCs have become popular. NBFCs will continue to gain market share over banks due to their ability to provide flexible lending solutions and tailored services, focused approach to tap the under-served and niche customer markets, ability to penetrate deeper into geographies, leveraging technology to reinvent the lending process, strong origination skills and shorter turnaround time.

The education sector is expanding from all sides – students pursuing higher education and institutions expanding further. In India, the overall education market in fiscal 2024 is estimated at ~₹18.5-19.0 trillion, which includes both the overseas education market and the domestic education market. The growing number of individuals seeking higher education overseas and in India has led to an explosion in demand for student loans.

Avanse Financial Services Limited is an education-focused non-banking financial company (“NBFC”) operating in India. According to the CRISIL MI&A Report’s description of their business, they offer a full stack education offering with products ranging from education loans for students to growth capital for education institutions through education infrastructure loans. They also provide collateral-backed financing to private educational institutions in India.

India’s second largest education focused NBFC by AUM and disbursements, and operating in a large and growing addressable market in India.

According to the CRISIL MI&A Report, education loans recorded AUM growth from ₹75 billion during the Financial Year 2019 to ₹90 billion during Financial Year 2021 and an estimated ₹418 billion during Financial Year 2024, at a CAGR of 41.1% between Financial Years 2019 and 2024, and a CAGR of 65% between Financial Years 2021 and 2024, which is significantly higher than other asset classes. The CRISIL MI&A Report also describes that NBFCs’ share in the overall education loan market also increased from 8% as of March 31, 2019, to 24% as of December 31, 2023.

Pan-India, multi-channel distribution presence, enabling widespread coverage with limited reliance on branches.

They operate on a pan-India front and have a multi-channel distribution network across their student and educational institution loans businesses, with physical locations in major education hubs in India. According to the CRISIL MI&A Report, education loans focused NBFCs have a differentiated distribution approach with a higher degree of reliance on education counsellors, DSAs, and digital channels as compared to a physical branch network which is predominantly required for other traditional loans such as mortgages, MSMEs and LAP. As of March 31, 2024, they serviced 545 locations in India, maintaining a hybrid presence, and strategically combining a physical branch network of 19 branches and sales representative offices, staffed with a 215-member sales team, with their distribution network.

Technology and analytics-driven business, with scalable operating model.

Technology has been at the forefront of their operations to drive distribution reach, operational and collection efficiency and overall borrower experience. They have adopted a cloud first approach and their technology systems are scalable to cater to various student profiles, with enhanced application performance and cost efficiency. They have also implemented security solutions utilising an integrated security information and incident management tool. They also have an API-driven technology landscape, enabling them to handle the requirements of various product types.

  • The company’s student loans – international business is largely concentrated in the United States, Canada and the United Kingdom. This exposes them to political and macro-economic risks in these geographies, which could adversely affect their business, results of operations and cash flows.

  • The company is vulnerable to volatility in interest rates for both their borrowing and lending operations, which could cause their net interest income to vary and consequently, affect their profitability.

  • They rely significantly on their information technology systems and a breach of or cyber-attacks on their technology systems could adversely affect their business and lead to financial, legal, and reputational damage.

Particulars (in Rs. crores)

Particulars (in Rs. crores)

Since there are no listed peer companies that engage in a business similar to that of Avanse Financial Services Limited. Accordingly, it is not possible to provide an industry comparison in relation to the stated company.

The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Kotak Mahindra Capital Company Limited Avendus Capital Private Limited J.P. Morgan India Private Limited Nomura Financial Advisory and Securities (India) Private Limited Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) SBI Capital Markets Limited

Registrar for the IPO is Link Intime India Private Limited

The company earns its revenue through the following sources:

  • Primarily by providing business loans for infrastructure development and other capital requirements, with flexible loan tenures, and their experience and domain knowledge enable them to underwrite educational institution loans based on the existing cash flows and income, among other factors.
  • Offer education loans to Indian students looking to pursue higher education overseas and in India. Their domestic business also includes loans to professionals engaging in executive learning programs, and financing for both curriculum fees for students enrolled in accredited schools, and non-curriculum fees associated with skilling programs, executive education, and test preparation courses, all in India.

Their revenue from operations increased from ₹5082.84 crores in FY22 to ₹17,269.60 crores in FY24, clocking a whopping revenue growth of 239%. Their PAT increased from ₹854.60 crores in FY22 to ₹4592.92 crores in FY24. Their PAT grew at an astounding 437% over the two years.

As of March 31, 2024, they are the second largest education focused NBFC in India by assets under management (“AUM”). According to the CRISIL MI&A Report, they also have the second-highest disbursements during the financial year 2023 and recorded the second highest profit after tax in financial year 2024 among education-focused NBFCs in India.

Parameter FY22 FY23 FY24
Total Income (₹ crores)
508.541
990.229
1728.806
Profit Before Tax (₹ crores)
85.46
211.315
459.292
Net profit (₹ crores)
63.207
157.711
342.403
EBITDA (₹ crores)
372.224
764.459
1355.536
EPS (₹)
3.83
8.66
15.4
Parameter FY22 FY23 FY24
Profit before tax
85.460
211.315
459.292
Net Cash from Operating Activities (₹ crores)
(1490.482)
(3532.520)
(3495.019)
Net Cash from Investing Activities (₹ crores)
37.252
(37.169)
(43.017)
Net Cash from Financing Activities (₹ crores)
1659.729
4031.499
4051.719
Cash and Cash Equivalents (₹ crores)
325.267
787.077
1300.760

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 (Equity in this case)
  • Select the Issue Name from the drop-down. The issue name is the company’s name, which is Avanse Financial Services Limited
  • 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

Follow these steps to know the allotment status on the registrar’s website:

  • Visit the Link Intime India Private Limited website
  • Choose “Public Issues” from the “Investor Services” drop-down
  • Select Avanse Financial Services Limited from the drop-down
  • Enter your PAN number or Application number
  • Click on “Submit” to know the allotment status

Here are the steps to apply for Avanse Financial Services 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.

Avanse Financial Services Ltd IPO FAQs

The Avanse Financial Services Limited IPO has an issue size of ₹3,500 crores. The IPO opens for subscription on TBA and closes on TBA.

Link Intime India Private Limited is the registrar for this IPO.

You may read more about Avanse Financial Services Limited and its IPO from the company’s red herring prospectus (RHP) here: (SEBI | Avanse Financial Services Limited DRHP)

Open Demat Account to Invest in any IPO
+91 -

personImage
Open Demat Account to Invest in any IPO
+91 -