Arohan Financial Services IPO

Arohan Financial Services IPO: aims to raise ₹1,750 crore

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Arohan Financial Services IPO will open for subscription soon. Kolkata-based microfinance company Arohan Financial Services has filed a draft prospectus with SEBI, seeking permission to launch its IPO. The MFI player focuses on the unserved and underserved states across the country. According to market sources, the IPO will mobilize around ₹1,750 crores.

The IPO will comprise a fresh issuance of shares amounting to ₹850 crores planned to be used towards augmenting its capital base. Arohan Financial Services expects these funds to be deployed in FY2022. In addition, the company’s existing shareholders Maj Invest Financial Inclusion Fund II K/S, Michael & Susan Dell Foundation, Tano India Private Equity Fund II, TR Capital III Mauritius, and Aavishkaar Goodwell India Microfinance Development Company II Ltd plan to sell 27,055,893 shares as part of an Offer for Sale (OFS).

The company also plans to undertake a pre-IPO placement of ₹150 crores. If the investment goes through, the fresh issuance portion of the IPO will be reduced by this amount. The IPO will have 35% reservation for retail investors while 15% will be earmarked for non-institutional investors (NII) and 50% for qualified institutional buyers (QIB).

Also read: IPO List 2021: a complete list of IPOs in 2021

Arohan Financial Services

AFS Limited is a leading NBFC-MFI with operations in financially under-penetrated Low Income States of India. Arohan provides income-generating loans and other financial inclusion-related products to customers who have limited or no access to financial services. As of September 30, 2020, Arohan was the fifth largest NBFC-MFI in India and the largest NBFC-MFI in Eastern India (Source: CRISIL Report), based on Gross Loan Portfolio (“GLP”) with a GLP of ₹48.57 billion.

AFS is a part of the Aavishkaar Group, which provides business solutions to assist sustainable enterprises dedicated to social and environmental change, has advised a large number of organisations on inclusive business strategies and has provided significant amounts of venture capital funding to social impact businesses. As of September 30, 2020, the Aavishkaar Group had an AUM of approximately US$1.00 billion across Asia.

The company has a broad range of products for financially underserved customers. the company`s financial products are classified into credit and insurance products. Its credit products include income-generating loans and other loan products for various household purposes. Its insurance products include life and health insurance covers issued and underwritten by certain Indian insurance companies with whom we have entered into tie-ups. the company also offers term loans to small microfinance institutions (“MFIs”).

As of September 30, 2020, we served approximately 2.21 million borrowers in 17 states. These included 12 of the 14 Low Income States in India (as defined in the CRISIL Report). As of that date, our microfinance business branch network consisted of 710 branches in 11 states, and our MSME lending business branch network consisted of 10 branches in eight states.

Objective of the Issue

  • For expanding business.
  • To finance the company’s working capital requirements.
  • For general corporate purposes.

Competitive strengths

  • Well-managed organizational structure.
  • Experienced and qualified management.
  • Best in class financial products.
  • Strong financial track record.

Basic details about the company

Full nameArohan Financial Services Ltd
IndustryNon-banking finance companies

Dates to remember

IPO Opening date*updating soon
IPO Closing date*updating soon
Basis of Allotment date*updating soon
Initiation of Refunds*updating soon
Credit to Demat Account*updating soon
 Listing Date*updating soon

IPO details

Issue type*updating soon
IPO issue size*updating soon
Number of shares offered*updating soon
Face value*updating soon
Price band *updating soon
Retail portion*updating soon
Lot size*updating soon
Minimum application*updating soon
Maximum application*updating soon
Minimum application amount*updating soon
maximum application amount*updating soon
Listing Exchange*updating soon

Financial Summary

FY2018FY2019FY2020H1 FY2021
Net income31.0127.6126.862.6
Net margin (%)9.519.613.612.3

**will update more details immediately after the announcements

Final thoughts

Arohan Financial Services IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision.

Happy Investing

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