Belstar Microfinance gets Sebi’s go-ahead to raise ₹1300 crores via IPO

Belstar Microfinance Limited has received approval from the Securities and Exchange Board of India (Sebi) to raise ₹1300 crores through an Initial Public Offering (IPO). The IPO comprises a combination of fresh issuances amounting to ₹1000 crores and an offer for sale worth ₹300 crores by existing shareholders and promoters, as detailed in the DRHP data. The company’s Mainboard IPO is set to be listed on both the BSE and NSE indices, with each equity share having a face value of ₹10. The allocation percentages include 10% for retail investors, 75% for QIBs, and 15% for HNIs.

The company’s promoters include Muthoot Finance Limited, Sarvam Financial Inclusion Trust, and Dr. Kalpanaa Sankar. The registrar for the IPO is Link Intime India Private Limited, while the book-running lead managers are ICICI Securities Limited, Axis Capital Limited, SBI Capital Markets Limited, and HDFC Bank Limited.

In the financial year 2023, Belstar Microfinance reported revenues of ₹10,379.15 million, showing a significant increase from ₹7,284.31 million in 2022. The profit after tax (PAT) for 2023 stood at ₹1,303.25 million, compared to ₹451.29 million in the previous year. The company’s peer group includes Muthoot Microfin Limited, Equitas Small Finance Bank Limited, Ujjivan Small Finance Bank Limited, CreditAccess Grameen Limited, Spandana Sphoorty Financial Limited, and other major players in the industry.

Established in 1988, Belstar Microfinance offers a wide range of loan products catering to micro-enterprises, small enterprises, consumer goods, festivals, education, and emergencies. As of December 31, 2023, it ranks as the 9th largest Non-Banking Finance Company—Micro Finance Institution (NBFC-MFI) in India based on its assets under management (AUM). The company operates in 279 districts across 19 states and union territories, with 1,009 branches and a workforce of 10,169 employees, serving approximately 2.67 million customers as of the end of 2023.