Financial Services Wager: Could Avenue Capital and GIC Stand to Profit?
Two prominent investors, Avenue Capital and GIC, are planning to sell their stakes in an upcoming Initial Public Offering (IPO) of an unnamed Indian financial services company. The IPO is structured as a 100% offer for sale (OFS) of up to 10.54 crore equity shares by existing shareholders, including Avenue Capital Group, GIC, State Bank of India, and Federal Bank.
Avenue Capital, a US-based stressed assets and private credit investment firm, plans to sell up to 6.87 crore shares through its affiliate, Avenue India Resurgence Pte Ltd. GIC, a Singapore sovereign wealth fund, intends to fully exit from the Indian financial services company by selling up to 1.62 crore shares, which equates to approximately a 5% stake.
The size of the IPO is expected to be in the range of Rs 1,000-1,500 crore, according to market sources from May 2025. This total value represents the worth of shares being sold during the OFS, encompassing all selling shareholders. However, the exact per-share price or valuation for Avenue Capital's and GIC's individual stakes has not been disclosed in the draft red herring prospectus or related filings as of early August 2025.
The sale of stakes by Avenue Capital and GIC may impact the pricing or demand for the upcoming IPO of the Indian financial services company. Avenue Capital, however, is considering retaining a minority position in the company. GIC, on the other hand, intends to fully exit from the Indian financial services company after selling its stake.
It is important to note that the sale of stakes by Avenue Capital and GIC is not mandatory and may be subject to market conditions. Subscribing to the website PRO will provide access to exclusive curated articles, but this is not related to the sale of stakes by Avenue Capital and GIC in the Indian financial services company.
The Indian financial services company has not been publicly identified in this article. Stay tuned for updates as more information becomes available.
Avenue Capital, being a US-based firm engaged in stressed assets and private credit investment, is planning to sell its shares in the upcoming IPO of an unnamed Indian financial services company as part of its business strategy. GIC, a Singapore sovereign wealth fund, isintending to fully invest out from this Indian company by selling its shares, marking a significant move in its business dealings.
