Arohan Financial Services IPO
Arohan Financial Services IPO — date, issue size, SEBI status & DRHP details 2026
Arohan Financial Services filed its draft red herring prospectus (DRHP) with SEBI on 2 Jun 2026 for an IPO of a fresh issue of up to ₹600 crore and an offer for sale of up to 4,04,37,529 shares. The draft is no longer on SEBI's list of pending offer documents. The price band, lot size and IPO dates are not announced yet.
Arohan Financial Services is a technology-enabled NBFC-MFI that lends to underserved customers in rural and semi-urban India. Its assets under management were Rs 6,308.41 crore on 31 December 2025.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the DRHP filed with SEBI
Where the Arohan Financial Services IPO stands
From draft to listing. Today is 23 October 2026.
- DRHP filed 02 Jun 2026
- SEBI observations Done
- RHP & price band TBA
- Bidding TBA
- Listing TBA
| DRHP filed with SEBI | 2 Jun 2026 |
|---|---|
| SEBI status | SEBI review completed |
| Last SEBI communication | 30 Sep 2026 |
| Coordinating lead manager | DAM Capital Advisors Limited |
| RHP, price band & dates | Not announced |
Unlisted (pre-IPO) share price
Arohan Financial Services shares trade off-market before listing. This is the latest indicative dealer quote, not an exchange price.
Arohan Financial Services IPO details
The offer as the DRHP describes it. Terms can change in the RHP.
| Issue type | Fresh issue and offer for sale |
|---|---|
| Fresh issue | Up to ₹600 Cr |
| Offer for sale | Up to 4,04,37,529 shares |
| Total issue size | Depends on the price band |
| Pre-IPO placement | Up to ₹120 Cr (reduces the fresh issue) |
| Face value | ₹10 per share |
| Proposed listing | BSE, NSE |
| Price band | Not announced (comes with the RHP) |
| Lot size | Not announced |
| IPO dates | Not announced |
| Book running lead managers | DAM Capital Advisors Limited, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited |
| Registrar | MUFG Intime India Private Limited |
Who is selling in the offer for sale
| Selling shareholder | Type | Offering | Avg. cost / share |
|---|---|---|---|
| Teachers Insurance and Annuity Association of America | Investor | Up to 97,33,309 shares | Rs 134.04 |
| Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. | Investor | Up to 62,41,091 shares | Rs 137.65 |
| Aavishkaar Goodwell India Microfinance Development Company-II Limited | Investor | Up to 49,57,208 shares | Rs 45.68 |
| Tano India Private Equity Fund II | Investor | Up to 44,61,875 shares | Rs 35.27 |
| Maj Invest Financial Inclusion Fund II K/S | Investor | Up to 41,18,081 shares | Rs 86.11 |
| Danish Sustainable Development Goals Investment Fund K/S | Investor | Up to 39,94,607 shares | Rs 148.35 |
| TR Capital III Mauritius | Investor | Up to 25,98,649 shares | Rs 115.24 |
| Michael & Susan Dell Foundation | Investor | Up to 8,74,614 shares | Rs 20.06 |
| Triodos Fair Share Fund (legal owner Triodos Funds B.V.) | Investor | Up to 7,72,027 shares | Rs 123.79 |
| Triodos Sicav II (Triodos Microfinance Fund) | Investor | Up to 7,72,028 shares | Rs 123.79 |
The ten investor sellers named on the cover have a weighted average cost between Rs 20.06 and Rs 148.35 per share, and the document lists 48 more corporate and individual selling shareholders in Annexure A, mostly at Rs 215 to Rs 225 per share.
Strengths & risks
The case for and against, from the DRHP's own numbers and risk factors.
Strengths · 7
- 01AUM stood at Rs 6,308.41 crore on 31 December 2025, which CARE ranks ninth in India with a 4.71% market share.
- 02The company operates 1,073 branches across 17 states and 320 districts, so its loan book is spread over a wide area.
- 03Capital adequacy (CRAR) was 31.20% on 31 December 2025, with Tier I capital at 30.58%.
- 04Net interest margin was 9.86% in the nine months to December 2025, and 13.10% in FY2025.
- 05Average cost of borrowings fell to 7.76% in the nine months to December 2025 from 11.79% in FY2025.
- 06Gross NPA ratio improved to 1.69% on 31 December 2025 from 2.85% on 31 March 2025, and net NPA was 0.39%.
- 07Digital collections rose to 13.53% of collections in the nine months to December 2025 from 6.89% in FY2023.
Risks · 10
- 01The RBI told the company to stop sanctioning or disbursing loans from 21 October 2024 to 3 January 2025, and similar action could come again.
- 02Profit after tax fell from Rs 313.82 crore in FY2024 to Rs 109.69 crore in FY2025, and was Rs 60.74 crore in the nine months to December 2025.
- 03Active borrowers fell from 2.41 million on 31 March 2024 to 1.95 million on 31 December 2025, and AUM fell 15.60% in FY2025.
- 04Total borrowings were Rs 5,219.43 crore on 31 December 2025 and the debt to equity ratio was 2.50 times, so the company depends on steady funding.
- 05Operating cash flow was negative at Rs 133.22 crore in the nine months to December 2025 and Rs 1,395.37 crore in FY2024.
- 06Gross NPAs were Rs 101.72 crore on 31 December 2025, and the credit cost ratio was 4.37% in the nine months to December 2025.
- 07The top three states held 67.89% of AUM on 31 December 2025, so a local shock can hit the whole book.
- 08The document says some past corporate records and filings, including those for share allotments, are not traceable.
- 09The company has 1,181 criminal proceedings filed by it and 6 criminal, 5 tax and 15 regulatory proceedings against it.
- 10None of the offer money from the sale of shares reaches the company, and the document names ten large investors as sellers, with the largest block of 97,33,309 shares from TIAA.
Arohan Financial Services financials
Restated figures in ₹ crore, as reported in the DRHP.
| ₹ crore | 31 Dec 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Revenue from Operations | 1128.13 | 1691.75 | 1628.69 | 1087.53 |
| Total Income | 1133.05 | 1695.26 | 1634.63 | 1091.00 |
| EBITDA | 470.74 | 776.90 | 1010.35 | 563.36 |
| Profit After Tax | 60.74 | 109.69 | 313.82 | 70.72 |
| Net Worth | 2091.81 | 2025.13 | 1914.76 | 1338.03 |
| Total Borrowing | 5219.43 | 4703.40 | 6015.84 | 4533.49 |
| Total Assets | 7461.84 | 6885.79 | 8115.44 | 6018.17 |
Key ratios (FY25)
P/E and market capitalisation need the price band and are added when the RHP is out.
Where the IPO money goes
₹600 crore of the fresh issue is earmarked to named objects; offer for sale proceeds go to the selling shareholders, not the company.
About Arohan Financial Services
As of 31 December 2025, its assets under management (AUM) were Rs 6,308.41 crore. According to the CARE Report, this makes it the second largest NBFC-MFI in Eastern India by AUM (based on the location of the corporate office) and the ninth largest in India, with a market share of 4.71%.
The company works through 1,073 branches in 17 states and 320 districts as of 31 December 2025. It had 1.95 million active borrowers on that date, down from 2.14 million on 31 March 2025 and 2.41 million on 31 March 2024. The average ticket size of its microfinance loans was Rs 55,551.67 in the nine months to December 2025, against Rs 39,524.71 in FY2023. Digital collections were 13.53% of total collections in the same period.
The top three states made up 67.89% of AUM on 31 December 2025. The company is promoted by Aavishkaar Venture Management Services Private Limited, Intellectual Capital Advisory Services Private Limited, Vineet Chandra Rai and Swati Rai. Its shareholders include TIAA, FMO, Maj Invest, Tano and other development finance and impact investors.
The Reserve Bank of India directed the company to stop sanctioning or disbursing loans from 21 October 2024. The direction was lifted on 3 January 2025. Gross disbursements fell from Rs 6,708.89 crore in FY2024 to Rs 4,635.66 crore in FY2025. Its credit rating was CARE A- (Stable) and ICRA A (Stable) for the latest periods shown.
The industry
The CARE Report says the Indian microfinance industry extends formal credit to underserved and low-income households, mainly in rural and semi-urban areas. NBFC-MFIs have held a market share between 21.68% and 25.27% of the overall MFI industry. The report describes NBFC credit towards microfinance as one of the fastest growing retail loan segments in India, helped by rising rural incomes, digital financial infrastructure and policy support. The sector has faced headwinds such as the COVID-19 pandemic, inflation and tighter regulation.
Customer concentration: The top three states made up 67.89% of AUM on 31 December 2025 (69.38% on 31 March 2025).
Promoters & management
Promoters I-Cap (10.33%) and AVMS (3.82%) together hold 14.15% before the issue; the individual promoters hold no shares and no promoter group member holds any.
| Name | Role |
|---|---|
| Dinesh Kumar Mittal | Chairman and Non-Executive Independent Director |
| Manojkumar N Nambiar | Managing Director |
| Vineet Chandra Rai | Vice Chairman and Promoter Nominee Director |
| Milind Ramchandra Nare | Deputy Chief Executive Officer and Chief Financial Officer |
| Anirudh Singh Thakur | Company Secretary and Chief Compliance Officer |
The bankers & the filings
Who is running the issue, and the SEBI documents this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
SBI Capital Markets Ltd.
16 issues handledBest listing: Indo-MIM (+44.3%). Weakest: Central Mine Planning & Design Institute (-7.0%).
Motilal Oswal Investment Advisors
25 issues handledBest listing: Kusumgar (+37.0%). Weakest: Turtlemint Fintech Solutions (-10.4%).
Dam Capital Advisors Ltd
10 issues handledBest listing: ESDS Software Solution (+76.5%). Weakest: Prasol Chemicals (-9.8%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Arohan Financial Services IPO: frequently asked
When will the Arohan Financial Services IPO open?
The Arohan Financial Services IPO dates are not announced yet. The draft is no longer on SEBI's list of pending offer documents. The company announces the dates and price band after it files its red herring prospectus (RHP) with the Registrar of Companies, usually a week or two before bidding opens. This page switches to the full IPO page with dates, price band and lot size as soon as that happens.
What is the Arohan Financial Services IPO price band?
The price band is not announced yet. It is set by the company and its lead managers and published with the RHP, a few days before the issue opens. The DRHP fixes only the face value of ₹10 per share.
How big is the Arohan Financial Services IPO?
Arohan Financial Services filed its draft red herring prospectus (DRHP) with SEBI on 2 Jun 2026 for an IPO of a fresh issue of up to ₹600 crore and an offer for sale of up to 4,04,37,529 shares. The final size in rupees depends on the price band.
Has SEBI approved the Arohan Financial Services IPO?
The draft is no longer on SEBI's list of pending offer documents. SEBI observations are valid for 12 months; the IPO has to open within that window or the company must file again.
What is the Arohan Financial Services IPO GMP?
There is no grey market premium to report before the price band is announced. IPO Guru starts tracking the Arohan Financial Services IPO GMP once the RHP and price band are out.
What will Arohan Financial Services do with the IPO money?
As per the DRHP: Fresh issue gross proceeds (the abridged prospectus does not split the uses; net proceeds after expenses not yet stated) (₹600 crore).
Who are the lead managers of the Arohan Financial Services IPO?
The book running lead managers are DAM Capital Advisors Limited, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited. MUFG Intime India Private Limited is the registrar.
Is Arohan Financial Services profitable?
Yes. Profit after tax was Rs 109.69 crore in FY2025 and Rs 60.74 crore in the nine months to 31 December 2025, against Rs 313.82 crore in FY2024.
Who are the selling shareholders in the Arohan Financial Services IPO?
The offer for sale is up to 4,04,37,529 shares. The largest sellers named on the cover are TIAA (up to 97,33,309 shares) and FMO (up to 62,41,091 shares).
Did the RBI stop Arohan Financial Services from lending?
Yes. The RBI directed the company to cease sanction and disbursal of loans from 21 October 2024, and the direction was lifted on 3 January 2025.
Other companies in the IPO pipeline
Mainboard companies with drafts filed with SEBI, same bankers first.
Know the day the price band is out.
We track every mainboard draft from SEBI filing to listing. When Arohan Financial Services files its RHP, this page becomes the full IPO page with dates, price band, lot size, GMP and subscription.
Not investment advice. Figures are from the company's draft offer document filed with SEBI and may change in the RHP.
