Ravita Engineering Services to raise ₹116 crore through IPO on NSE Emerge

Vaibhav Vyapaar, an RBI-registered non-banking financial company specializing in digital personal lending, intends to raise ₹42 crore through an initial public offering on NSE Emerge. The IPO, which begins taking subscriptions on Tuesday, has a price range of ₹51-₹54 per share. The firm will issue 77.96 lakh equity shares. The net earnings from the IPO will be utilized to increase the company's capital and for general corporate use.

Getfive Advisors will serve as the book running lead manager, while Kfin Technologies has been appointed as the Registrar. Itha Venkata Raghava Gowrinath, the company's Chairman, Managing Director, and Promoter, mentioned that LoanFront app has concentrated on providing credit access to salaried and self-employed individuals, including first-time borrowers, throughout urban and semi-urban India. Since its inception, the app has achieved 114 lakh downloads and disbursed a total of ₹1,500 crore as of June.

The funds generated from the new share issuance will primarily be used to bolster the company's capital base and aid in expanding its loan book to meet Reserve Bank of India's capital adequacy standards. As Vaibhav Vyapaar enters the public domain, its focus remains on disciplined underwriting, robust risk management, expanding co-lending partnerships, and ongoing investment in its technology platform.

Aman Jain, Director at Getfive Advisors, highlighted that India's digital lending industry is expanding due to increasing smartphone penetration, digital KYC, and the rising demand for formal credit among underserved borrowers. Vaibhav Vyapaar, with its experienced management team, technology-driven underwriting framework, and growing customer base, is well-positioned to capitalize on the long-term growth potential in India's retail credit market.