Avanse Financial Services Limited IPO

Its Erstwhile Promoters are subject to certain ongoing regulatory investigations by enforcement agencies including the Enforcement Directorate and the outcome of such investigations may adversely impact it and the Equity Shares of face value of 5 each held by its Promoter and the market price of its Equity Shares.

The company requires substantial capital for its business and any disruption in the cost and availability of capital, including the company sources of financing, could have an adverse effect on its business, results of operations, financial condition and cash flows.

The company relies on counsellors, aggregators and direct selling agents for the origination of its loans. Any disruption, negligence, fraud or inefficiency in the services provided by counsellors and aggregators could adversely affect its business, results of operation, financial condition and cash flows.

Our student loans - international business is largely concentrated in the United States, Canada and the United Kingdom. This exposes it to political and macro-economic risks in these geographies, which could adversely affect its business, results of operations and cash flows.

A substantial portion of loans provided under its student loans - international and education loans - domestic businesses are unsecured and susceptible to certain operational and credit risks which may have an adverse effect on its business, results of operations, financial condition and cash flows.

The company is subject to periodic inspections by the Reserve Bank of India. Non-compliance with observations made by the Reserve Bank of India during any such inspections could expose it to penalties and restrictions. Any imposition of penalty or adverse findings by the Reserve Bank of India during any future inspections or otherwise may have an adverse effect on its reputation, business, results of operations, financial condition, and cash flows.

Its business has grown rapidly and the company may not be able to sustain its historical growth rates and asset quality metrics in the future. Any inability to manage its growth, asset quality and expansion efforts effectively and execute its growth strategy in a timely manner, or within budget estimates, could have an adverse effect on its business, results of operations, financial condition and cash flows.

Any deterioration in the credit quality of its loans could adversely affect the company's business, results of operations, financial condition and cash flows.

While the company has applied for consent to undertake the Offer from certain of its lenders, the company has not received consents from some of these lenders as on the date of this Draft Red Herring Prospectus. Any failures to obtain these consents could lead to changes in its plans or strategies, including the company capital raising plan through the Offer.

The company depends on the accuracy and completeness of information provided by its borrowers. Any misleading information provided to it by the company borrowers may affect its judgement of their credit worthiness, which could have an adverse effect on its business, cash flows, results of operations, financial condition and cash flows.