led Svatantra Microfin picks Axis, Kotak for Rs 2,000 cr

Aditya Birla Group scion Ananya Birla led Svatantra Microfin Private Ltd, one of India’s largest microfinance institutions (MFI), has picked investment banks Axis Capital and Kotak Mahindra Capital as advisors for now for its proposed initial public offer, multiple industry sources in the know told Moneycontrol.

On March 4, Moneycontrol had reported that the MFI had invited a clutch of investment banks to make pitches as it kickstarted preparation for a domestic listing to fuel further growth.

"Axis and Kotak have been engaged for now and the deal is set to kick off in early April. More investment banks may be added to the syndicate later if required," said one of the persons above.

A second person said the size of the proposed issue was likely to be between Rs 2,000 crore to Rs 2,500 crore.

Two other persons confirmed the above.

A fifth person added that discussions had also been held with SBI Capital-Investec, JM Financial and BofA Securities for advisory roles, without elaborating further.

All the five persons above spoke to Moneycontrol on the condition of anonymity.

An email query to Svatantara Microfinance remained unanswered at the time of publishing this article. Moneycontrol could not elicit an immediate comment from the i-banks.This article will be updated as soon as we hear from the parties.

In a kick-off meeting, the issuer firm discusses key plans and the roadmap for the IPO along with the roles and responsibilities for the advisors who are brought together.

The private equity partners

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 or $230 mn. The planned IPO will offer external investors the opportunity to pare stake.

The investment by the PE funds followed Svatantra’s buyout of Navi Group’s subsidiary ,Chaitanya India Fin Credit, making the combined entity amongst the largest players in the sector.

Aditya Birla Sun Life AMC was the last IPO from the Aditya Birla group, with the market debut in October 2021.

A closer look at Svatantra Microfin

Ananya Birla founded Svatantra Microfin, the first to receive the NBFC-MFI licence from RBI, at the age of 17. 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,” it'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 FY 25-26 with a gross loan portfolio of Rs 15,700 crore. For FY24-25, 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 per cent 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 hands, 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.”