Manappuram Finance shares surged 5.4% to a 52-week high of Rs 207.30 following news of subsidiary Asirvad Micro Finance receiving Sebi approval for an IPO. The IPO, filed last October, will follow a book-building process with allocation to various investor categories.
Asirvad Micro Finance IPO | The proposed initial public offering is only a fresh issue of equity shares of up to Rs 1,500 crore with no offer for sale (OFS) component.
The company, in consultation with the lead bankers to the issue, may consider a pre-IPO placement of up to Rs 300 crore and if such fundraising is undertaken, the fresh issue size will be reduced. As per the DRHP, the net proceeds from the fresh issue will be used to augment the capital base of the company to meet future business requirements and plan to be deployed in FY24.