Avanse Financial Services IPO: SEBI Returns DRHP On Technical Grounds

The Securities and Exchange Board of India (SEBI) has reportedly returned the draft red herring prospectus (DRHP) of non-banking financial company (NBFC) Avanse Financial Services on “technical grounds”.

Moneycontrol reported, citing sources, that the “reason for sending back” the prospectus was “technical queries” and it was not a “rejection”. As per the report, the startup can refile the initial public offering (IPO) papers as early as Monday (July 29). 

This comes a month after the NBFC filed its DRHP. As per the draft documents, its IPO will comprise a fresh issue of shares worth INR 1,000 Cr and an offer for sale (OFS) component of INR 2,500 Cr. 

Founded in 2013, Avanse offers education financing for students and educational institutions in India and also caters to students looking to study abroad. It also offers skill enhancement loans in India. 

The NBFC is backed by the likes of Warburg Pincus, International Finance Corporation (IFC), Kedaara Capital, and Mubadala Investment Company. 

(This story will be updated soon)

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