Abans Holdings IPO : 7 things to know about
Abans Holdings Ltd, a financial services company has already filed the draft red herring prospectus (DRHP) with SEBI back in the end of September 2021. As of date, the final SEBI approval for the IPO, which is given in the form of observations to the issue, is awaited. The company will decide on the next course of action only after getting the approval of SEBI.
7 important things to know about the Abans Holdings Ltd IPO
1) Abans Holdings Ltd has filed for a combination of fresh issue and an offer for sale. The company has not indicated any IPO value for the issue either of the fresh issue component or the offer for sale component. The DRHP only indicates the number of shares offered as fresh issue and the number of shares offered under the OFS. Hence the value of the IPO would only be known once the indicative IPO price band is known.
2) As per the draft red herring prospectus issued by the company, the IPO will comprise of 38 lakh equity shares in total by way of fresh issue and 90 lakh equity shares by way of an offer for sale (OFS) by the existing promoters and the early shareholders of the company.
The size of the issue and the specific size of the fresh issue and the offer for sale will only be known once the price band is announced ahead of the IPO. However, for now the IPO approval is still awaited.
3) Let us look at the offer for sale portion first. Currently, the promoter Abhishek Bansal holds 96.45% stake in Abans Holdings Ltd. The entire offer for sale portion of 90 lakh shares will be offered by the promoter Abhishek Bansal who will tender these shares in the OFS.
The OFS component will not result in any EPS or equity dilution but will result in change of ownership, enhancement of public holding and increase in the floating stock of the company.
4) Abans is into the business of financial services. Hence the fresh issue component of the Abans Holdings IPO will be utilized to investing in its NBFC subsidiary, Abans Finance. NBFCs need continuous capital infusion to boost their capital adequacy so that they continue the momentum of building their asset books. This will help the NBFC business to augment its capital base and fund future growth of the company.
5) The company is yet to firm up plans for a pre-IPO placement of shares. The company may look to place around 2.5 lakh shares by way of private placement to HNIs, family offices and to qualified institutional buyers. Pre-IPO placement is typically done with a longer lock in period and at a price that can be different from the eventual IPO price.
This has to be understood as distinct from the anchor placement that the company normally does before the issue opening. If the pre-IPO placement is successful, then the IPO portion of fresh issue will be reduced proportionately.
6) The company, Abans Holdings Ltd, is a financial services provider and offers NBFC services, global institutional trading in equities and other asset classes like commodities and foreign exchange. Abans Holdings Ltd also offers private client services for its exclusive clients, asset management, investment advisory and also wealth management services on an exclusive basis to its key clients.
The company also has a fairly large base of corporate and institutional clientele. Apart from being operational and present in India, Abans Holdings Ltd also has its business footprint in other countries like United Kingdom, UAE, China, Singapore and the Mauritius.
7) The IPO of Abans Holdings Ltd will be lead managed by Aryaman Financial Services Ltd. They will act as the book running lead managers or BRLMs to the issue.
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