Avanse Financial Services on Wednesday announced that it has raised about ₹390 crore from its two existing shareholders via a rights issue.
Warburg Pincus, a leading global private equity firm, through its affiliate Olive Vine Investment, and International Finance Corporation (IFC), an arm of World Bank, invested in the rights issue as per their existing shareholding pattern–80 per cent and 20 per cent, respectively, the education-focused non-banking financial company (NBFC) said in a statement.
With this investment, the net worth of the company stands at about ₹1,450 crores. The equity raised will enable Avanse to strengthen its balance sheet and capital adequacy ratio, per the statement.
To fulfil academic dreams
Amit Gainda, Managing Director and Chief Executive Officer, Avanse Financial Services, said: “We will utilise this freshly infused capital to reach out to more education aspirants to fulfil their academic dreams. We will continue to focus on taking Avanse to its next phase of the sustained profitable growth journey.”
As of March 31, 2022, the Assets Under Management of Avanse stood at ₹4,836 crores, achieving a compounded annual growth rate of 22 per cent over the last four years, the company said.