Svatantra Microfin IPO: Ananya Birla-backed India’s 2nd largest MFI files DRHP for Rs 3,000 crore issue

Ananya Birla-promoted microfinance non-banking financial company (NBFC), Svatantra Microfin, has filed draft papers with the Securities Exchange Board of India (SEBI) for its initial public offering worth Rs 3,000 crore.

According to the NBFC’s draft red herring prospectus (DRHP), Svatantra Finance’s IPO is a book-built issue comprising a fresh issue worth Rs 1,500 crore and an offer for sale (OFS) component of Rs 1,500 crore, with a face value of Rs 10 each.

Of the total Rs 1,500 crore raised via fresh issue, the company will deploy the majority of its net proceeds to strengthen its Tier-1 capital base to help meet its future capital requirements, including onward lending. Also, a portion of the fresh issue will be used to meet offer-related expenses.

Prior to the filing of RHP, Svatantra Finance may also consider a pre-IPO placement of Rs 300 crore; if undertaken, the amount will be deducted from the fresh issue component.

The company will not receive any portion from OFS, and it will not form a part of net proceeds. The investment bankers for the offer are Axis Capital, Avendus Capital Private, IIFL Capital Services, Kotak Mahindra Capital Company, and SBI Capital Markets.

MUFG Intime India is the registrar to the issue.

The NBFC’s IPO is vulnerable to several risks, some of which include adversity in the country’s microfinance industry, such as increased write-offs and lower collection efficiency. Additionally, growth in levels of non-performing assets, changes in interest rates, and disruptions in key sources of capital may adversely affect the company’s business and financial performance.

In FY26, the company reported its profit after tax at Rs 649 crore, rising nearly 46% year-on-year against Rs 445 crore reported in FY25. Its revenue from operations for the period stood at Rs 4,120 crore, up around 20% YoY as compared to Rs 3,441 crore reported during the same time last year.

Svatantra Microfin is an inclusion-focused NBFC whose primary portfolio comprises microfinance loans. As per the DRHP, the company claims to be India’s second-largest NBFC-MFI, with its pan-India footprint spanning 2,253 branches as of March 31, 2026.