Arohan Financial Services Plans IPO Filing, Eyes ₹9,000 Crore AUM And Business Diversification

Kolkata-based Arohan Financial Services is gearing up to enter the capital markets, with plans to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI by the end of this month, as per The Business Standard report.  

The proposed IPO is aimed at strengthening its capital position and supporting future growth. 

IPO Plan: DRHP Filing and Listing Timeline 

The company is currently finalising its DRHP and expects to submit the document shortly, after which it will await regulatory feedback before moving ahead with listing plans. 

“We are currently in the process of preparing the DRHP document. We hope to file the document by the end of this month. Then, we will await queries and hopefully get a ticket from Sebi. We are hoping that the next financial year will be a better space to look at the listing,” said Manoj Kumar Nambiar, managing director. 

Growth Strategy: AUM Expansion and Network Optimisation 

Arohan expects its assets under management (AUM) to cross ₹7,000 crore by the end of FY26, with a further increase to around ₹9,000 crore in FY27, driven by improved operational efficiency across its branch network. 

Over the longer term, the company has outlined an ambition to build a ₹20,000-crore portfolio by 2030, supported by steady expansion and deeper penetration in its existing markets. 

The lender currently operates across 17 states with nearly 1,000 branches, and its near-term strategy is focused on strengthening productivity rather than aggressive geographic expansion. 

Core Markets and Expansion Areas 

West Bengal remains the largest contributor to the company’s loan book, accounting for about 27–28%, followed by Bihar and Assam.  

In recent years, Arohan has also expanded into newer markets such as Gujarat, Maharashtra, Tamil Nadu and Karnataka, broadening its national footprint. 

Entry Into Secured Lending Segments 

In addition to its IPO plans, the company is exploring diversification beyond its core microfinance business, supported by regulatory changes that allow greater flexibility in lending. 

“This 60-40 change from the Reserve Bank of India (RBI) gives us more space to look at other revenues, including secure products. We have already done a detailed project note on gold loans for our board to consider.  

We are also looking at other asset classes like loans against property, vehicle loans and two-wheeler loans. We will hopefully launch at least one of those verticals in the next financial year. But the idea is also to use the current network of people,” Nambiar added. 

The strategy focuses on leveraging its existing distribution network and customer base instead of building a new infrastructure from scratch. 

Exploring External Borrowing Options 

To support growth, Arohan is also in discussions with global development finance institutions such as BlueOrchard and FMO for additional funding lines. The company is evaluating overseas borrowings alongside domestic instruments like non-convertible debentures (NCDs). 

“As a growing company, we will look at whatever is possible from a borrowing perspective but our focus will be tenure and landed cost of funds. Blue Orchard, Responsibility and FMO are in discussions with us. Some of them have already been lenders. So, this is an additional line that we are looking at,” he said. 

Read More: PhonePe Halts IPO Plans Amid Global Market Volatility! 

Conclusion 

With IPO plans underway, a clear roadmap for AUM expansion and a shift towards diversified lending, Arohan Financial Services is positioning itself for the next phase of growth while strengthening its financial and operational base. 

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