NBFC firm Avanse Financial Services has successfully completed a ₹1,200 crore capital raise through a rights issue from its existing shareholders. The funding round saw participation from prominent investors including Warburg Pincus, Kedaara Capital, and Alpha Investment Company LLC, demonstrating continued confidence in the company's growth trajectory.

Capital Raise Details

The rights issue represents a significant milestone for Avanse Financial Services as it strengthens its financial position to expand operations. The company emphasized that this capital raise underscores strong shareholder confidence and reflects its disciplined approach to building a diversified funding base.

Strategic Focus and Growth

Avanse Financial Services has consistently delivered sustained growth by focusing on enabling the academic aspirations of Indian students. The company's success is supported by robust risk management practices and strong execution capabilities across both domestic and international education segments. This strategic positioning has allowed the firm to maintain its leadership in the education financing sector.

Fund Utilization Plans

The fresh capital raised will be strategically deployed across multiple areas to enhance the company's market position:

• Scale education loan disbursements to reach more students
• Improve education infrastructure to support better service delivery
• Deepen institutional partnerships to expand market reach

The company stated that this funding aligns with its strategy to raise capital in a calibrated manner, ensuring sustainable growth while maintaining financial discipline. The capital infusion positions Avanse Financial Services to capitalize on the growing demand for education financing in India's expanding higher education sector.

M&M Financial Services has received an upgraded Environmental, Social and Governance (ESG) rating, with its score improving to 79.6 from the previous rating of 76.2. The enhanced rating was assigned by SES ESG Research Private Limited, a SEBI registered Category II ESG rating provider.

ESG Rating Enhancement Details

The company informed stock exchanges about the rating upgrade through a regulatory filing on January 3rd, 2026. The ESG assessment was conducted independently by SES ESG Research Private Limited without any engagement from the company.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing referenced Part A, Para A (3) of Schedule III and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Key aspects of the rating process include:

• Independent assessment by SEBI registered ESG rating provider
• Based on publicly available company data for FY 2024-25
• No direct engagement between the company and rating agency
• Compliance with latest SEBI ESG rating guidelines

Rating Methodology and Significance

SES ESG Research Private Limited conducted the assessment using publicly available information from Mahindra & Mahindra Financial Services Limited pertaining to FY 2024-25. The rating reflects the company's performance across environmental sustainability, social responsibility, and governance practices.

The company has made the regulatory filing available on its official website under the investor relations section, ensuring transparency and accessibility for stakeholders. This ESG rating upgrade demonstrates the company's commitment to sustainable business practices and enhanced governance standards.