Arohan Financial Files for IPO to Raise Rs 1,800 crore

Arohan Financial, headquartered in Kolkata, has filed an IPO (initial public offering) DRHP. It is projected that NBFC-MFI is set to generate Rs 1,750-1,800 crore from this IPO.

The microfinance institution started operations in 2006 and, as of September of last year, serving approximately 22.1 lakh borrowers in 17 states and is the largest NBFC-MFI in Eastern India per gross loan portfolio.

Saral Loan, Bazaar loan, Secondary loans, loan to small MFIS are some of the products of Arohan Financials.

IPO funds will be used to boost the company's financial base to meet its potential capital needs, which are planned to be deployed in FY22. It provides a wide variety of facilities across credit and financial instruments.

By September 2020, 76.78% of its microfinance portfolio had been in non-urban areas of India, with women accounting for more than 97% of its total customers.

Arohan Financial has reported the highest customer growth of CAGR 49% between FY18 and FY20. The company's disbursements, AUM, Overall Detailed Sales, have risen YOY, with a CAGR of 110.03% on FY20.

The Aavishkaar Group comprises its promoters, Aavishkaar Venture Management Services (AVMS) and Intellectual Capital Advisory Services (I-Cap). As of September 2020, the Aavishkaar Group had an AUM of approximately US$1 billion in Asia.

Arohan provides income-generating loans and other financial inclusion related products to customers who have limited or no access to financial services.

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