led Svatantra Microfin invites IPO pitches; eyes over Rs 3,000

Aditya Birla Group scion Ananya Birla-led Svatantra Microfin Private Ltd, one of India’s largest microfinance institutions (MFI), has invited a clutch of investment banks to make pitches as the firm kickstarts preparation for a domestic listing, multiple industry sources in the know told Moneycontrol. “Pitches have been called for by Svatantra Microfin, which is looking to unlock value through an IPO to fuel further growth. These are early days and no final call has been taken on the issue size or structure, but the company may look to raise in excess of Rs 3,000 crore,” said one of the persons cited above, adding that plans may change depending on market conditions. Two other persons confirmed the above and one of them added that the proposed IPO is likely to be a combination of primary and secondary issue of shares , with an opportunity for external investors to pare stake. A fourth person added that investment banks would make presentations to the firm over the next few weeks. “Svantantra Microfin has scaled well and we may be approaching a better cycle for the sector, with the worst hopefully behind us,” this person added. All the four persons quoted above spoke to Moneycontrol on the condition of anonymity. An email query to Svantantra Microfin and Aditya Birla Group remained unanswered at the time of publishing this article. Aditya Birla Sun Life AMC was the last IPO from the Aditya Birla group, with the market debut in October 2021. Two years back, on March 4, 2024, Svatantra Microfin sealed the largest investment ever by private equity investors in the microfinance sector. The firm entered into definitive agreements with Advent International and Multiples Private Equity for an investment of Rs 1,930 crore ($230 million). The investment followed Svatantra’s buyout of Navi Group’s subsidiary ,Chaitanya India Fin Credit, making the combined entity amongst the largest players in the sector. Ananya Birla-founded Svatantra Microfin was the first to receive the NBFC-MFI licence from RBI. The firm, which started operations in 2013, provides affordable financial and non-financial solutions to women entrepreneurs. “We offer collateral-free microloans, largely through the Joint Liability Group (JLG) model, enabling women entrepreneurs to build sustainable livelihoods, support their families, and contribute to local economic progress,” the firm’s FY24-25 annual report said. Svatantra Microfin: The stats and spread According to the firm’s website, it has 4 million-plus customers and 24,000-plus employees across 2,064 branches in 19 states. It disbursed loans of Rs 19,600 crore for FY26 with a gross loan portfolio of Rs 15,700 crore. For FY25, the firm registered an operating profit of Rs 1,067 crore and profit after tax of Rs 419 crore, with operating expense to AUM at 7.3% and a net worth of Rs 3,721 crore. The fast-growing firm’s net profit rose 309.30 per cent to Rs 72.65 crore in the quarter ended December 2025 as against Rs 17.75 crore during the previous quarter ended December 2024. On the other hand, sales rose 33.65 per cent to Rs 494.18 crore in the quarter ended December 2025 as against Rs 369.77 crore during the previous quarter ended December 2024, Business Standard reported. “The combined entity (Svatantra Micro Fin plus Chaitanya India Fin Credit) achieved an AUM of Rs 14,902 crore in 2024-25, growing by 13 per cent year-on-year despite a shrinking industry base. We delivered a robust RoA of 4%, supported by responsible lending practices, fair pricing, and strict adherence to regulatory codes of conduct. Our financial strength was underlined by strong capitalization, with CRAR at 29.61% for SMPL and 23.55% for CIFCPL, ensuring resilience in an uncertain environment,” Chairperson Ananya Birla said in the firm’s FY 24-25 annual report. She added, “I want to reaffirm that promoters remain strongly committed, with ownership above 51 per cent in all scenarios, ensuring long-term stability and readiness to infuse capital when required.” The share prices of listed peers like Satin Creditcare, Bandhan Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank and Fusion Microfinance have risen by 2.67 per cent, 9.27 percent, 10.91 per cent, 27 per cent and 5.77 per cent in the last six months. Meanwhile, CreditAccess Grameen, ESAF Small Finance Bank and Muthoot Microfin have slipped by 9.12 per cent, 11.82 per cent and 4.6 per cent during the same timeframe.