Muthoot Finance’s Belstar Microfinance recently filed an IPO of ₹1,300 crore DRHP with SEBI proposing Check Now:

According to the draft red herring prospectus (DRHP),  The draft red herring prospectus (DRHP) for the Chennai-based company’s IPO includes a ₹1,000 crore fresh equity share issue and a ₹300 crore offer-for-sale (OFS) by existing investor shareholders.

Belstar Microfinance Ltd, a microfinance subsidiary of Muthoot Finance, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise ₹1,300 crore through an IPO.

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The draft red herring prospectus (DRHP) for the Chennai-based company’s IPO includes a ₹1,000 crore fresh equity share issue and a ₹300 crore offer-for-sale (OFS) by existing investor shareholders.

Danish asset management firm MAJ Invest will sell shares worth ₹175 crore through an Offer for Sale (OFS), followed by Arum Holdings Ltd (₹97 crore) and Augusta Investments Zero Pte Ltd (₹28 crore).

Maj Invest had previously invested in Belstar Microfinance in 2018 and again in 2022.

Currently, Muthoot Finance, one of the promoters, owns little more than 66 percent of Belstar Microfinance.

The proceeds from the ₹760 crore fresh issue will be used to cover future capital requirements for onward lending, with the remainder for general business reasons.

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Belstar Microfinance, an NBFC-MFI, offers a wide range of loan products, including micro enterprise, small enterprise, consumer goods, festival, education, and emergency loans.

Primarily, its lending methodology revolves around the’self-help group’ (SHG) model, which accounts for 57% of the entire loan portfolio as of December 31, 2023.

The microfinance firm had a profit of ₹235 crore and a revenue of ₹1,283 crore for the nine-month period ending December 2023.

The book-running lead managers for the IPO include ICICI Securities, Axis Capital, HDFC Bank, and SBI Capital Markets.

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Updated: May 3, 2024, 758.00