Arohan Financial Services has filed draft papers with the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO). The public issue is expected to include a fresh issue of equity shares worth ₹600 crore along with an offer for sale (OFS) by existing shareholders. The filing comes amid ongoing activity in India’s financial services IPO market in 2026.
According to the draft red herring prospectus (DRHP), the IPO will comprise a fresh issue of shares valued at ₹600 crore.
The proposed issue will also include an offer for sale of nearly 4.04 crore equity shares by existing investors, allowing select shareholders to partially reduce their stake in the company.
Several institutional investors are expected to offload shares through the OFS route.
These include Teachers Insurance and Annuity Association, Michael and Susan Dell Foundation, Aavishkaar Goodwell India Microfinance Development Company-II, Tano Capital, TR Capital III Mauritius and Danish Sustainable Development Goals Investment Fund, among others.
The company stated in its draft documents that the proceeds from the fresh issue are proposed to be used towards strengthening its capital base and meeting general corporate purposes.
Additional capital may help support lending activities, operational requirements and future business expansion within the microfinance segment.
Earlier in January 2026, Managing Director Manoj Kumar Nambiar had indicated that the company was looking to raise around ₹1,500 crore through its proposed IPO.
The final issue size may depend on market conditions, investor demand and regulatory approvals at the time of launch.
Arohan Financial Services started operations in 2006 with a single branch in Kolkata and has gradually expanded its network over the years.
As of December 2025, the company operated 1,073 branches across 17 states, reflecting its broader presence within India’s microfinance sector.
The filing comes after the market listings of Aye Finance and Kissht earlier in 2026.
The proposed IPO is being managed by DAM Capital Advisors, Motilal Oswal Investment Advisors and SBI Capital Markets.
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Arohan Financial Services’ draft IPO filing reflects the continued momentum in India’s financial services sector. The proposed ₹600 crore fresh issue, along with the OFS component, is expected to support the company’s capital needs and future operations while providing existing investors an opportunity to dilute part of their holdings.
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Published on: May 19, 2026, 12:43 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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