Arohan Financial Services is in the final stages of preparing its draft red herring prospectus (DRHP) for an initial public offering worth ₹1,400 crore. The move comes amid improving sentiment in the microfinance segment following a period of asset quality challenges.
The proposed IPO is expected to comprise:
The structure reflects a combination of capital raising for business needs and partial exits by existing investors.
The promoter group, including Aavishkaar Group and Intellecap, currently holds a combined 14.2% stake in the company and does not plan to dilute its holdings in the IPO.
Existing investors such as the Michael & Susan Dell Foundation and Tano Capital are expected to participate in the OFS component.
According to Managing Director Manoj Nambiar, the company aims to file the DRHP within a month.
The approval process typically takes three to four months, after which companies have a 12-month window to launch the IPO.
The planned listing comes at a time when the microfinance sector is showing early signs of recovery after facing asset quality pressures over the past two years.
Management commentary indicates improving business conditions, with a stable year-end outlook and a positive start to the current financial year.
Read More: Propshare Celestia IPO Allotment Status.
The proposed IPO by Arohan Financial Services signals renewed activity in the microfinance space. The timing of the filing suggests the company is positioning itself to tap market opportunities as sector conditions stabilise.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing.
Published on: Apr 17, 2026, 3:00 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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