Arohan Financial Services files IPO papers, plans Rs 600 crore fresh issue

Indian non-bank finance company Arohan Financial Services has filed draft papers for an initial public offering (IPO), according to documents submitted to the market regulator on Friday.

The IPO will comprise a fresh issue of shares worth Rs 600 crore, while existing investors plan to sell up to 40.4 million shares through an offer for sale.

The filing comes more than a year after the Reserve Bank of India lifted lending restrictions imposed on Arohan and several other non-bank lenders over concerns related to “usurious” pricing and high markups.

Among the selling shareholders, Teachers Insurance and Annuity Association, which owns a 12.06% stake in the company, plans to offload around 9.7 million shares. The Michael & Susan Dell Foundation, holding a 2.05% stake, will sell 874,614 shares.

For the financial year ended March 31, 2025, Arohan Financial reported a 65% decline in profit due to rising expenses, although its net interest income increased nearly 13%.

The company said proceeds from the fresh issue would be used to strengthen its capital base.

DAM Capital Advisors, Motilal Oswal Investment Advisors and SBI Capital Markets are managing the public issue.

India’s IPO market, which saw strong momentum in 2025, has witnessed softer sentiment this year amid tensions in the Middle East. However, several large offerings, including those of Jio Platforms and National Stock Exchange, are still expected to hit the market.