PremiumAban Group-backed financial services provider, Aban Holdings has fixed a price band of ₹256 per share and ₹270 per share for its initial public offering (IPO). The issue will be launched on December 12 for investors to subscribe and will close on December 15. The IPO is a mixture of fresh issue and offer for sale. Promoter Abhishek Bansal will be participating in the offer.
The IPO comprised of fresh issue of 38 lakh equity shares and an offer for sale (OFS) of up to 90 lakh equity shares. Promoter Abhishek Bansal is the selling shareholder.
The face value of the equity shares offered in the IPO is ₹2 each.
From the total, about 10% of the issue size will be reserved for qualified institutional buyers, while 30% will be kept for non-institutional investors and the remaining 60% will be kept for retail individual investors.
Up to ₹80 crore of the proceeds from the fresh issue will be used for further investment in its NBFC subsidiary, Aban Finance for financing the augmentation of its capital base to meet its future capital requirements. Also, proceeds will be used for general corporate purposes.
Aban Finance contributes to about 2-5% of the company's revenue over the last 3 years.
The proceeds from the OFS will be given to the selling shareholders and hence will not belong to the company.
Aryaman Financial Services is the book-running lead manager for the IPO, while Bigshare Services is the registrar of the offer.
Aban Holdings operate a diversified global financial services business, headquartered in India, providing NBFC services, global institutional trading in equities, commodities and foreign exchange, private client stock broking, depositary services, asset management services, investment advisory services and wealth management services to corporates, institutional and high-net-worth clients.
In the five months period of FY23 (ending August 31, 2022), the company's profit was at ₹29.74 crore and revenue at ₹284.9 crore. In the fiscal FY22, the profitability was around ₹61.97 crore, and revenue at ₹638.63 crore, while EBITDA stood at ₹92.48 crore and EBITDA margin at 14.48%.