Belstar Microfinance Ltd. IPO Details
Belstar Microfinance was incorporated on January 11, 1988. As of December 31, 2023, the company is the ninth-largest non-banking finance company - microfinance institution in India in terms of assets under management. It aims to be a socially responsible microfinance institution, driving financial inclusion across the country by promoting entrepreneurship and the economic empowerment of women through the provision of loans in rural and semi-urban regions.
| Bidding Dates |
|---|
| To Be Announced |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| - | - | - | - | 0 | - | - | ₹13,000.0 M | DRHP DOC |
Belstar Microfinance Ltd. issue details
Belstar Microfinance Ltd. IPO issue size is ₹ 13,000.0 M
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers |
|---|---|---|---|
| Category Reservation | 10% | 15% | 75% |
Belstar Microfinance Ltd. IMPORTANT IPO DATES
| Issue Open Date | - |
| Issue close Date | - |
| Allotment Date | - |
| Refund Date | - |
| Demat Account Credit Date | - |
| Listing Date | - |
| Listing on Exchange(s) | NSE and BSE |
Belstar Microfinance Ltd. NUMBER OF SHARES ON OFFER
Belstar Microfinance Ltd. FINANCIALS
| Period | Net Profit (Rs in millions) | Interest Income (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) |
| 9MFY24 | 2,351.2 | 11,592.3 | -23,413.7 | -23,468.8 |
| FY23 | 1,303.3 | 8,817.7 | -8,685.5 | -8,754.8 |
| FY22 | 451.3 | 6,768.3 | -7,526.7 | -7,578.0 |
| FY21 | 466.5 | 5,229.4 | -6,517.0 | -6,551.2 |
Belstar Microfinance Ltd. INFORMATION ON IPO ISSUE
About Belstar Microfinance Ltd.
Belstar Microfinance was incorporated on January 11, 1988. As of December 31, 2023, the company is the ninth-largest non-banking finance company - microfinance institution in India in terms of assets under management. It aims to be a socially responsible microfinance institution, driving financial inclusion across the country by promoting entrepreneurship and the economic empowerment of women through the provision of loans in rural and semi-urban regions.
Object of the Issue
- To meet future capital requirements towards onward lending
- General corporate purposes
Belstar Microfinance Ltd. Strengths
Pan-India presence
The company has a pan-India presence, a strong and well-diversified portfolio, and a consistent track record of growth and improvement in financial and operational metrics
Brand recall
The company is part of the Muthoot Finance Group, a business conglomerate with a presence across 29 states and union territories. As a result, Muthoot Finance, its listed corporate promoter, holds a majority stake of 66.1% in the company
Business model
The company operates a customer-centric business model and has a deep understanding of the large Indian underbanked customer segment
Belstar Microfinance Ltd. Risks
Unsecured portfolio
In India, microfinance borrowers generally do not have access to other forms of organized lending, and as of December 31, 2023, 99.9% of the gross loan portfolio consisted of unsecured loans
Substantial capital requirement
The business requires a substantial amount of capital, and any disruption in the sources of funding or increase in the costs of funding could adversely affect the liquidity, financial condition, results of operations, and cash flows
Negative cash flows
The company has experienced negative cash flows from operating activities in the past and may experience negative cash flows in the future
IPO FAQs
The category allocation of qualified institutional buyers is 75.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 10.0%.