Arohan Financial Services files IPO papers; eyes ₹600 cr via fresh issue

Microfinance institution Arohan Financial Services has filed preliminary papers with market regulator Sebi to raise funds through an initial public offering (IPO), comprising a fresh issue of shares worth Rs 600 crore.

Apart from the fresh issue, there will be an offer for sale (OFS) of4.04 crore shares by existing investors, according to the draft red herring prospectus (DRHP) filed with Sebi.

US Teachers Insurance and Annuity Association, a retirement financial services firm, Michael & Susan Dell Foundation,Aavishkaar Goodwell India Microfinance Development Company-II Ltd,Tano Capital, TR Capital III Mauritius, and Danish Sustainable Development Goals Investment Fund,among other existing investors, will offload shares.

Proceeds from the fresh issue will be used to boost the company's capital base and for general corporate purposes, the draft papers filed last week showed.

Earlier in January, Arohan Financial Services Managing Director Manoj Kumar Nambiar stated that the company is looking to raiseRs 1,500 crore through its maiden public offering.

Arohan Financial Services is a technology-enabled non-banking financial company -microfinance institution (NBFC-MFI) offering income-generating loans and a suite of financial and non-financial products to customers primarily across rural and semi-urban states in India.

It had an assets under management (AUM) of Rs 6,308 crore as of December 2025.

Arohan Financial Services, which commenced its business in 2006 with operations in a single location in Kolkata, has gradually expanded its footprint. As of December 2025, it operates 1,073 branches across 17 states in the country.