Microfinance institution Arohan Financial Services has filed preliminary papers with market regulator Sebi to raise funds through an initial public offering (IPO), comprising a fresh issue of shares worth Rs 600 crore.
Apart from the fresh issue, there will be an offer for sale (OFS) of 4.04 crore shares by existing investors, according to the draft red herring prospectus (DRHP) filed with Sebi.
US Teachers Insurance and Annuity Association, a retirement financial services firm, Michael & Susan Dell Foundation, Aavishkaar Goodwell India Microfinance Development Company-II Ltd, Tano Capital, TR Capital III Mauritius, and Danish Sustainable Development Goals Investment Fund, among other existing investors, will offload shares.
1 May 2026
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Proceeds from the fresh issue will be used to boost the company's capital base and for general corporate purposes, the draft papers filed last week showed.
Earlier in January, Arohan Financial Services Managing Director Manoj Kumar Nambiar stated that the company is looking to raise Rs 1,500 crore through its maiden public offering.
Arohan Financial Services is a technology-enabled non-banking financial company -microfinance institution (NBFC-MFI) offering income-generating loans and a suite of financial and non-financial products to customers primarily across rural and semi-urban states in India.
It had an assets under management (AUM) of Rs 6,308 crore as of December 2025.
Arohan Financial Services, which commenced its business in 2006 with operations in a single location in Kolkata, has gradually expanded its footprint. As of December 2025, it operates 1,073 branches across 17 states in the country.
The filing comes after the successful listings of Aye Finance and Kissht in 2026.
DAM Capital Advisors, Motilal Oswal Investment Advisors and SBI Capital Markets are managing the issue.
