Avanse Financial Services Ltd IPO
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The second-biggest education-focused NBFC in India, with a fast-growing AUM that will reach ₹13,303 crores in 2024 at a compound annual growth rate of 65.86%.
A hybrid distribution model, backed by a small number of branches and a streamlined sales force, allows for a pan-Indian presence in 545 locations.
Sustaining a low loan default rate of 0.43% with the use of advanced data and AI-driven underwriting and collections frameworks.
With a broad lender base and effective asset-liability management, the debt-to-equity ratio is expected to drop to 2.76 by 2024.
Strong financial development supported by seasoned leadership and well-known investors, with payouts up 47% CAGR and net profit increasing more than five times since 2022.
Avanse Financial Services Ltd IPO: Risks
Exposure to macroeconomic and political risks in important global markets, such as the US, Canada, and the UK, may hurt cash flows and business operations.
Financial stability may be impacted by a high percentage of unsecured loans in both the domestic and international student loan segments, which raises operational and credit risk.
Lack of job placement among borrowers after graduation and a heavy reliance on borrower employability for loan repayment could have a detrimental effect on business success.
Possible difficulties in promptly collecting unpaid balances on secured loans may put a pressure on cash flow and financial outcomes.
Reputational hazards brought on by bad press could damage the company's reputation and affect how it operates.
IPO Timeline
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07 Apr 2025Bidding Starts
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07 Apr 2025Bidding Ends
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07 Apr 2025Allotment Finalization
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07 Apr 2025Refund Date
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07 Apr 2025Demat Date
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07 Apr 2025Listing Date
About Avanse Financial Services Ltd IPO
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As per the March 2024 report by CRISIL MI&A, Avanse Financial Services Limited is a prominent non-banking financial company (NBFC) in India focusing on education. It ranks second in the sector by both earnings and assets under management (AUM). They offer complete funding for education, including loans for domestic and foreign students as well as loans for school infrastructure. Their AUM increased at a compound annual growth rate (CAGR) of 65.86% from ₹48.4 billion in March 2022 to ₹133 billion in March 2024. Serving around 36,000 students in 41 countries, the international student loan segment accounts for 78.28% of AUM and is mostly used by students pursuing MBA and STEM programs. Additionally, they provide collateral-backed loans to more than 1,900 Indian educational institutions, aiding Indian professionals and students through domestic student loans. Their loans come with individualized underwriting, flexible repayment plans, and extra services like foreign currency and insurance. By using a combination of digital platforms, education counselors, and branches, they can reach 545 places throughout India.
Read moreAvanse Financial Services Ltd IPO Objectives
Increasing the capital base to cover the company's future capital needs as a result of its expanding assets and activities.
Covering Offer Costs.
Avanse Financial Services IPO Promoter Holding Olive Vine Investment Ltd is the company's promoter.
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