According to The Economic Times, Arohan Financial Services is planning to apply for a ₹1,400 crore initial public offering within a month, combining ₹600 crore of primary issue and ₹800 crore of offer for sale (OFS). The Aavishkaar Group company would like to split the IPO between these components, as confirmed by Arohan Financial Services managing director Manoj Nambiar. The promoters, Aavishkaar and Intellecap together classified as the promoter group, cumulatively own 14.2% stake at present and will not sell any shares through the IPO. Long-time investors such as Michael & Susan Dell Foundation and Tano Capital are likely to sell shares through the OFS window.
As reported by The Economic Times, Arohan Financial Services has decided to file the DRHP on the basis of its December 2025 financials and business numbers. The company's assets under management stood at ₹6,300 crore, with Bihar, Uttar Pradesh and West Bengal together contributing about half of the total portfolio. The gross non-performing assets ratio improved to 1.6% from 2.9% a year ago, indicating significant improvement in asset quality. The non-banking finance company-microfinance institution had in January announced a ₹1,500 crore IPO plan with an equal share of primary issue and OFS, but has scaled down the size following the Iran war which led to a steep fall in the stock market.
According to The Economic Times, the sector came under severe stress after the Covid-19 pandemic in 2021, and then again after 2024 when it was trying to break the shackles and grew at a rapid pace. The microfinance sector's total book size stood at ₹3.29 lakh crore at the end of February, up 2.5% over the previous month, according to a monthly update by credit bureau Equifax India, reversing a prolonged phase of contraction. The market size stood at ₹4.43 lakh crore at the end of March 2024. Lenders' portfolio quality improved sequentially while the ageing bad loan ratio declined for the first time in the past 24 months.
As reported by The Economic Times, the company has been planning to go public since 2019 and had received the market regulator's go-ahead once in 2021, but stress in microfinance in quick succession over the past six years forced it to hold the plan. The process to get an approval takes about three-four months and then it carries a 12-month validity to list. Manoj Nambiar stated that "We are planning to file the DRHP soon. The idea is to be ready with a valid ticket when things settle down. The year-end commentary is positive and the first quarter has started off well."
