Avanse Financial to Raise $152 Million Through Rights Issue After IPO Withdrawal

As per Monceycontrol report, Avanse Financial Services, a significant player in India’s education loan sector, is set to raise $152 million (₹1,374 crore) through a rights issue.  

This strategic step follows the company’s withdrawal from an earlier planned IPO, impacted mainly by global factors affecting demand for overseas education loans. 

Avanse Approves ₹1,374 Crore Rights Issue Post IPO Withdrawal 

On December 17, 2025, the board of Avanse Financial Services approved a rights issue of ₹1,374 crore (approximately $152 million). The issue is targeted solely towards existing shareholders, including Warburg Pincus, Kedaara Capital, Mubadala, and others.  

The move replaces the previously approved IPO, which was impacted by geopolitical factors, including regulatory policies in the United States that affected international student flows. 

Earlier, in its IPO plan, the company intended to raise ₹1,000 crore through fresh equity issuance. Simultaneously, private equity shareholders were set to offload shares worth ₹2,500 crore. The IPO had secured market regulator SEBI’s approval in October 2024, which has now lapsed. 

Ownership Pattern and Strategic Amendments 

Warburg Pincus is Avanse’s largest shareholder, holding 59%, while IFC, Kedaara Capital, and Mubadala each hold over 10% stakes. Avendus Future Leaders Fund owns a smaller portion, 1.12%.  

The company has amended its articles recently to restore special rights to these shareholders, which were earlier removed as per IPO requirements from SEBI. 

Read More: Adani Airport Holdings Eyes $11 Billion Expansion, Seeks Strategic Partner Ahead of IPO! 

Business Focus and Financial Overview 

Avanse is the second-largest NBFC in the education loan space in India, with a strong concentration in overseas student financing. As of September 30, 2025, it held ₹21,713 crore in assets under management, with overseas loans comprising 80.4% of this amount.  

The United States, United Kingdom, and Canada together made up 91.6% of this loan portfolio. The firm mainly focuses on postgraduate education loans, a segment considered more financially stable for repayment. 

In FY25, Avanse posted a net profit of ₹508 crore, up from ₹342 crore in the previous financial year. 

Conclusion 

Avanse Financial Services has shifted its capital-raising strategy towards a rights issue of ₹1,374 crore, supported by key investors, following challenges in the international education sector that led to its IPO being dropped. 

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