Belstar Microfinance Limited is set to launch its Initial Public Offering (IPO) with a total issue size of ₹1,300 crores, comprising a fresh issue of ₹1,000 crores and an offer for sale (OFS) of ₹300 crores. The IPO has received approval from the Securities and Exchange Board of India (SEBI) and is expected to open for subscription on November 9, 2024, and close on November 12, 2024. The funds raised will primarily support future lending activities and general corporate purposes. As a subsidiary of Muthoot Finance, Belstar Microfinance focuses on providing various loan products, including micro-enterprise and education loans. This article will delve into the details of the Belstar Microfinance Limited IPO, including its DRHP, financial performance, investment options, and key highlights.
Key Information on Belstar Microfinance Limited IPO
Belstar Microfinance Limited IPO DRHP
The Belstar Microfinance Limited IPO DRHP outlines the following key information:
- Total Issue Size:₹1,300 crores
- Fresh Issue: ₹1,000 crores
- Offer for Sale (OFS): ₹300 crores
- Expected Open Date: November 9, 2024
- Expected Close Date: November 12, 2024
- Listing Date: November 18, 2024
Shareholder Quota in Belstar Microfinance Limited IPO
The Belstar Microfinance Limited IPO will include a reservation for existing shareholders. To qualify for this quota, investors must hold shares by a specified record date, ensuring that loyal investors are rewarded in this promising offering.
Company Overview of Belstar Microfinance Limited
Belstar Microfinance is recognized as one of the largest Non-Banking Finance Companies (NBFC-MFI) in India. The company offers a range of loan products aimed at empowering women in rural and semi-urban areas through its self-help group (SHG) model. This focus on social empowerment through microfinance makes Belstar a noteworthy player in the financial services sector.
Belstar Microfinance Credit Rating
The Belstar Microfinance credit rating has been positively reviewed by credit agencies due to its robust financial performance and growth potential. These ratings reflect the company’s ability to meet its financial obligations, enhancing investor confidence in the Belstar Microfinance Limited IPO.
Financial Performance of Belstar Microfinance Limited
As per the Draft Red Herring Prospectus (DRHP), Belstar’s total revenue from operations reached ₹1,283 crores as of December 31, 2023, significantly up from ₹727 crores in March 2022. Its profit surged to ₹235 crores in Q1 FY25 compared to just ₹45 crores in the same period the previous year. This impressive growth indicates a strong market position and financial health, making the Belstar Microfinance Ltd IPO share price an attractive consideration for investors.
How to Invest in the Belstar Microfinance Limited IPO
Investors interested in participating in the Belstar Microfinance Limited IPO can apply through various platforms:
- Brokerage Firms: Utilize online trading accounts with firms like ICICI Securities or HDFC Bank.
- UPI Applications: Investors can also apply using UPI-enabled applications, streamlining the process.
- Physical Application: Fill out an application form available through registered brokers to secure shares in the Belstar Microfinance Ltd IPO price.
Belstar Microfinance Limited IPO Review
In reviewing the Belstar Microfinance Limited IPO, potential investors should consider both the financial performance and the social impact of the company. Given its focus on microfinance and community development, investing in Belstar aligns not only with financial goals but also with broader social objectives. The Belstar Microfinance Limited annual report will provide further insights into its strategic direction and financial stability.
Conclusion
The Belstar Microfinance Limited IPO represents a significant opportunity for investors looking to enter the microfinance sector. With strong backing from Muthoot Finance and a commitment to social empowerment through lending, Belstar is well-positioned for future growth. If you want to learn how to analyze investment opportunities like this on your own, visit our website GRM IIT or contact us for expert guidance tailored to your needs.
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