Belstar Microfinance plans IPO to raise ₹1,300 crore 

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Belstar Microfinance Ltd, a subsidiary of Muthoot Finance, has filed a DRHP with SEBI to raise ₹1,300 crore. The company plans to raise the funds through IPO of equity shares with a face value ₹10 each.

The offer comprises a fresh issue of equity shares aggregating up to ₹1,000 crore (“Fresh Issue”) and an offer-for-sale of equity shares aggregating up to ₹300 crore (“Offer for Sale”), a statement issued here said.

The company proposes to utilise the net proceeds of the fresh issue to meet future capital requirements towards onward lending, estimated to be ₹760 crore in FY 2025, and the balance amount towards general corporate purposes.

The company offers a range of loan products, such as micro enterprise, small enterprise, consumer goods, festival, education and emergency loans.

The offer-for-sale comprises equity shares aggregating up to ₹175 crore by MAJ Invest Financial Inclusion Fund II K/S; up to ₹97 crore by Arum Holdings Ltd; and up to ₹28 crore by Augusta Investments Zero Pte Ltd.

ICICI Securities Ltd, Axis Capital Ltd, HDFC Bank Ltd and SBI Capital Markets Ltd are the book-running lead managers of the IPO issue.

According to the CRISIL report, Belstar Microfinance Ltd is the ninth-largest NBFC microfinance institution in India in terms of assets under management as of December 31, 2023. It is one of the few NBFC-MFIs that focus on the lending model or the“self-help group” model. It is also one of the top 10 NBFC-MFI players, with a relatively strong credit rating of “AA” and a stable outlook from Crisil.

The company’s operations are spread across 19 states and union territories, serving approximately 2.67 million customers.