Avanse Financial: Now this company will not bring IPO, know how it will raise Rs 1,374 crore

By Samira Vishwas On Dec 21, 2025

Avance Financial IPO: Avance Financial Services, an education loan provider, is now planning to raise Rs 1,374 crore through a rights issue. The company will raise this amount from its existing shareholders, which include Warburg Pincus, Kedra Capital and Mubadala.

Two people associated with this matter have given this information to Bussiness on the condition of anonymity. It was told that due to global uncertainties the company had recently withdrawn its IPO plan. This has affected the demand for loans taken for foreign education.

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Avanse Financial IPO

Second largest NBFC in education loans

Avance Financial Services is the second largest NBFC offering education loans. It works exclusively in the foreign education loan segment. The company’s board, in its meeting held on December 17, approved the proposal to raise funds through rights issue.

According to sources, after canceling the plan to raise funds from IPO, the company has chosen the route of rights issue.

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Why was the IPO plan withdrawn?

Avance Financial canceled its IPO plan due to uncertainties related to studies abroad, especially in America. America is considered to be the biggest destination for Indian students to study abroad. But due to the strict visa policies of US President Donald Trump, the number of Indian students going to study there has decreased.

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The plan was to raise Rs 1,000 crore from IPO

The company wanted to raise Rs 1,000 crore by issuing new shares through IPO. Apart from this, private equity shareholders Warburg Pincus, International Finance Corporation and Kedaara Capital were preparing to sell shares worth about Rs 2,500 crore.

Warburg Pincus is the largest shareholder of Evans Financial, which holds 59 percent stake in the company. IFC, Kedra and Mubadala have about 10-10 percent stake. Whereas Avendus Futures Leaders Fund has 1.12 percent stake. This information is based on the draft prospectus filed in July 2024.

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Approval had been received from SEBI

The company’s IPO had received approval from SEBI in October 2024. However, now the deadline for launching the IPO has ended. According to the rules, any company has to launch an IPO within 12 months of getting SEBI approval. If this does not happen, then the company has to again submit a new draft red herring prospectus to SEBI.