Arohan Financial Services files for IPO, plans ₹600 crore fresh issue

Indian non-bank finance firm Arohan Financial Services has filed for an ​initial public offering, according to draft papers ​dated Friday and filed with the market regulator.

The ‌company is selling new shares worth ₹600 crore ($62 million) while existing investors are looking to offload up to 40.4 million shares.

The filing comes more than a year after the Reserve Bank of India removed lending restrictions it had imposed on the firm and other non-bank lenders due to "usurious" pricing and high markups.

Among existing investors, US retirement financial services firm Teachers Insurance ‌and Annuity Association, which holds a 12.06 per cent stake in the company, is selling about 9.7 million shares, while the Michael & Susan Dell Foundation, with a 2.05 per cent stake, is looking to offload 874,614 shares.

 

For the year ended March 31, 2025, Arohan Financial Services posted a 65 per cent drop in ​profit, weighed down by a surge in expenses. Its net interest income ‌rose nearly 13 per cent.

The company will use proceeds from the sale of new shares to boost its ​capital ‌base.

DAM Capital Advisors, Motilal Oswal Investment Advisors and SBI Capital ‌Markets are managing the issue.

After a strong run for Indian IPOs in 2025, sentiment towards floats has weakened ‌this ​year amid conflict ​in the West Asia. Still, big-ticket IPOs such as Jio Platforms and National Stock Exchange are in ‌the offing.