MUMBAI: Belstar Microfinance, an arm of the largest gold loan company Muthoot Finance, has filed the final documents (draft red herring prospectus) with the regulator Sebi for its initial share sale which seeks to raise up to Rs 1,300 crore.
Apart from lending to women self help groups under the microfinance model, the Chennai-based firm also offers loans to micro enterprises, small enterprises, funding consumer goods, and personal and education loans.
According to the DRHP, the issue comprises a fresh issue of shares each with a face value of Rs 10, aggregating up to Rs 1,000 crore and an offer for sale up to Rs 300 crore.
The company proposes to utilize the net proceeds from the fresh issue to meet future capital requirements towards onward lending estimated to be Rs 760 crore in FY 2025 and the balance towards general corporate purposes.
The shareholders participating in the OFS include MAJ Invest Financial Inclusion find (Rs 175 crore) upto Rs 97 crore by Arum Holdings and upto Rs 280 crore by Augusta Investments Zero. It’s not clear whether the promoter group led by Muthoot Finance is paring how much of their stake.
