Belstar Microfinance Limited (“The Company” or “BML”) has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The Company offers a wide range of loan products, such as micro enterprise, small enterprise, consumer goods, festival, education and emergency loans.
The Company plans to raise fund through Initial Public Offering of Equity Shares (Face Value ₹ 10 each) aggregating up to ₹ 13,000 million [₹ 1,300 crore]. (“Total Offer Size”)
The total offer size comprises of – (i) fresh issue of equity shares aggregating up to ₹ 10,000 million [₹1,000 crore] (“Fresh Issue”) and (ii) offer for sale of equity shares aggregating up to ₹ 3,000 million [₹ 300 crore] (“Offer for Sale”).
The Company proposes to utilize the net proceeds of the fresh issue to meet future capital requirements towards onward lending estimated to be ₹ 7,600 million [₹ 760 crore] in FY 2025 and the balance amount towards general corporate purposes.(“The Objects of the Offer”)
The Offer for Sale comprises of Equity Shares aggregating upto ₹ 1,750 million [₹ 175 crore] by MAJ Invest Financial Inclusion Fund II K/S; upto ₹ 970 million [₹ 97 crore] by Arum Holdings Limited and upto ₹ 280 million [₹ 28 crore] by Augusta Investments Zero Pte Ltd (“Investor Selling Shareholder”). (Combined the “Selling Shareholders”)
ICICI Securities Limited, Axis Capital Ltd, HDFC Bank Limited and SBI Capital Markets Limited are the Book Running Lead Managers of the IPO issue.
BML aims to be a socially responsible microfinance institution, driving financial inclusion across the country by furthering entrepreneurship and economic empowerment of women through the provision of loans in rural and semi-urban regions.
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