Arohan Financial Services Nears DRHP Filing for ₹1,400 Crore IPO

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.

IPO Structure

The proposed IPO is expected to comprise:

• ₹600 crore through a fresh issue of shares
• ₹800 crore via an offer for sale (OFS)

The structure reflects a combination of capital raising for business needs and partial exits by existing investors.

Shareholding and 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.

Timeline and Filing Plans

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.

Sector Outlook

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.

Conclusion

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.

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