Arohan Financial Services IPO is the proposed initial public offering of Arohan Financial Services Limited, a technology-enabled non-banking financial company–microfinance institution (NBFC-MFI). The company filed its Draft Red Herring Prospectus (DRHP) with SEBI on May 15, 2026. The proposed issue consists of a fresh issue of equity shares aggregating up to ₹600 crore and an Offer for Sale of up to 4,04,37,529 equity shares by existing shareholders.
Arohan provides income-generating loans and other financial inclusion products primarily to underserved customers in rural and semi-urban India. As of December 31, 2025, the company had an AUM of approximately ₹6,308 crore and around 1.95 million active borrowers, supported by a network of 1,073 branches across 17 states.
The proceeds from the fresh issue are proposed to be used mainly to strengthen the company’s capital base for onward lending, along with general corporate purposes. The OFS proceeds will go to the selling shareholders and will not be received by Arohan.
Table of Contents
Arohan Financial Services IPO Details
| Information | Details |
|---|---|
| IPO Name | Arohan Financial Services IPO |
| Company Name | Arohan Financial Services Limited |
| Promoters | Aavishkaar Venture Management Services Private Limited, Intellectual Capital Advisory Services Private Limited, Vineet Chandra Rai and Swati Rai |
| IPO Type | Book Built Issue |
| IPO Category | Mainboard IPO |
| Current IPO Status | DRHP Filed |
| Face Value | ₹10 Per Equity Share |
| Price Band | |
| Issue Size | ₹600 Crore Fresh Issue + 4,04,37,529 Equity Shares OFS |
| Fresh Issue | Up to ₹600 Crore |
| Offer for Sale | Up to 4,04,37,529 Equity Shares |
| IPO Open Date | |
| IPO Close Date | |
| Anchor Investor Bidding | |
| Basis of Allotment | |
| Refund Initiation | |
| Shares Credited to Demat Account | |
| Listing Date | |
| Listing Exchange | BSE & NSE |
| Lot Size | |
| Registrar | MUFG Intime India Private Limited |
| Book Running Lead Managers | DAM Capital Advisors Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited |
The issue structure is based on the May 15, 2026 DRHP. The final price band, bid dates and lot size had not been specified in the DRHP.
Arohan Financial Services IPO Dates
| IPO Event | Date |
|---|---|
| DRHP Filing Date | May 15, 2026 |
| Anchor Investor Bidding | |
| IPO Opening Date | |
| IPO Closing Date | |
| Basis of Allotment | |
| Refund Initiation | |
| Shares Credited to Demat Account | |
| Listing Date |
The company has filed its DRHP with SEBI, but the public issue timetable has not yet been announced.
Arohan Financial Services IPO Reservation
| Investor Category | Reservation |
|---|---|
| Qualified Institutional Buyers (QIB) | To be updated |
| Non-Institutional Investors (NII) | To be updated |
| Retail Individual Investors (RII) | To be updated |
| Employee Category | To be updated |
The final reservation percentages will be available in the Red Herring Prospectus and subsequent IPO documents.
Arohan Financial Services IPO Lot Size
| Application | Shares | Amount |
|---|---|---|
| Retail Minimum | ||
| Retail Maximum | ||
| S-HNI Minimum | ||
| S-HNI Maximum | ||
| B-HNI Minimum |
The lot size and application amount cannot be calculated until the company announces the IPO price band.
About Arohan Financial Services Limited
Arohan Financial Services Limited is a technology-enabled NBFC-MFI focused on providing financial services to underserved and unserved customers across rural and semi-urban India.
The company commenced its microfinance operations in 2006 and provides income-generating loans primarily to women borrowers. Its offerings are designed to support household-level income generation and financial inclusion.
As of December 31, 2025, Arohan had approximately 1.95 million active borrowers and operated through 1,073 branches across 17 states. West Bengal, Bihar and Uttar Pradesh represented the largest state markets by AUM.
Arohan is part of the Aavishkaar Group and is promoted by Aavishkaar Venture Management Services Private Limited, Intellectual Capital Advisory Services Private Limited, Vineet Chandra Rai and Swati Rai.
Business Operations
Arohan operates primarily as a microfinance lender serving customers who have limited access to traditional financial services.
- Microfinance Loans – The company provides small-ticket income-generating loans, largely to women borrowers in rural and semi-urban markets.
- Group-Based Lending – Its lending model uses group-based microfinance structures supported by field-level branch operations and regular repayment processes.
- Financial Inclusion Products – Arohan also offers financial inclusion-oriented products designed for underserved customer segments.
- Rural and Semi-Urban Presence – The company’s branch network provides access to customers across multiple states, with a significant concentration in eastern and northern India.
- Technology-Enabled Operations – Arohan uses technology across lending, customer servicing, collections and operational processes. Digital collections represented 13.53% of collections in the nine months ended December 31, 2025.
- Borrower Base – Arohan had approximately 1.95 million active borrowers as of December 31, 2025. Its average microfinance ticket size increased from ₹39,525 in FY2023 to ₹55,552 during the nine months ended December 31, 2025.
Industry Overview
India’s microfinance industry serves households and small borrowers who may have limited access to conventional banking and formal credit.
The sector is influenced by borrower demand, household income, repayment behaviour, interest rates, funding costs, regulatory requirements and credit costs. NBFC-MFIs generally depend on a combination of equity capital and borrowings to fund their loan portfolios.
The microfinance sector also operates in a highly regulated environment. Changes in RBI regulations, state-level requirements, borrower indebtedness norms and lending practices can materially affect the operations and profitability of lenders.
For Arohan, geographic diversification and the ability to maintain asset quality are important operating considerations because a significant portion of its AUM remains concentrated in its key states.
Business Strategy
Arohan’s strategy is centred on expanding financial inclusion through technology-enabled microfinance and increasing access to credit in underserved rural and semi-urban markets.
The company intends to strengthen its capital base through the proposed fresh issue. The ₹600 crore fresh issue proceeds are proposed to be used for future business requirements towards onward lending and general corporate purposes.
The company also continues to focus on operational efficiency, digitalisation of collections and maintaining a broad branch network across its operating geographies.
As of December 31, 2025, Arohan’s AUM was approximately ₹6,308 crore, compared with ₹5,358 crore in FY2023. The company has stated that the fresh capital raised through the IPO would support its future lending requirements.
Arohan Financial Services IPO Financial Information
Financial performance provides important information about Arohan’s revenue generation, profitability, loan portfolio and credit costs.
Arohan Financial Services Financial Summary
| Particulars | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Revenue from Operations | ₹1,087.53 Crore | ₹1,628.69 Crore | ₹1,691.75 Crore | ₹1,544.88 Crore |
| Total Income | ₹1,695.26 Crore | ₹1,551.55 Crore | ||
| Net Interest Income | ₹441.95 Crore | ₹760.63 Crore | ₹859.09 Crore | |
| Profit Before Tax | ₹138.09 Crore | ₹163.41 Crore | ||
| Profit After Tax | ₹70.72 Crore | ₹313.82 Crore | ₹109.69 Crore | ₹122.33 Crore |
| EPS | ₹7.20 | ₹8.02 |
The FY2023–FY2025 figures above are based on the restated financial information included in the DRHP, while FY2026 figures are based on the company’s audited financial results for the year ended March 31, 2026.
Arohan Financial Services IPO Key Performance Indicators (KPIs)
Key Performance Indicators help evaluate the company’s loan portfolio, operating scale, profitability and asset quality.
| KPI | FY2023 | FY2024 | FY2025 | 9M FY2026 |
|---|---|---|---|---|
| AUM | ₹5,357.37 Crore | ₹7,112.04 Crore | ₹6,002.58 Crore | ₹6,308.41 Crore |
| Active Borrowers | 2.01 Million | 2.41 Million | 2.14 Million | 1.95 Million |
| Disbursements | ₹5,299.28 Crore | ₹6,708.89 Crore | ₹4,635.66 Crore | ₹4,491.68 Crore |
| Credit Cost | 4.08% | 2.87% | 6.06% | 4.37% |
| Return on Average Net Worth | 5.99% | 19.30% | 5.57% | 2.95% |
| Net Interest Margin | 9.86% | |||
| Operating Expenses / Average AUM | 6.50% |
AUM declined in FY2025 after the company faced a regulatory restriction on new lending, while the portfolio showed a recovery in the nine months ended December 2025.
Objects of the Arohan Financial Services IPO
The proposed fresh issue has two principal objects.
- Augmenting Capital Base – The company proposes to use the net proceeds from the fresh issue to strengthen its capital base and meet future business requirements for onward lending.
- The fresh issue is proposed to raise up to ₹600 crore before issue-related expenses.
- General Corporate Purposes – A portion of the net proceeds may be used for general corporate purposes, subject to applicable regulations and the final offer documents.
The proceeds from the OFS will be received by the selling shareholders rather than by Arohan.
Arohan Financial Services IPO Listing Performance
The IPO has not yet been listed, so there is currently no issue price, listing price or listing gain.
| Particular | Value |
|---|---|
| Listing Exchange | BSE & NSE |
| Listing Date | |
| Issue Price | |
| Listing Price | |
| Listing Gain | |
| Listing Gain (%) |
The DRHP proposes listing of Arohan’s equity shares on BSE and NSE.
Arohan Financial Services IPO Subscription Status
The subscription figures indicate investor participation after the IPO opens for bidding.
Arohan Financial Services IPO Subscription
| Investor Category | Subscription |
|---|---|
| Qualified Institutional Buyers (QIB) | |
| Non-Institutional Investors (NII) | |
| Retail Individual Investors (RII) | |
| Employee Category | |
| Total Subscription |
No subscription figures are available because the IPO has not yet opened for public bidding.
Arohan Financial Services IPO GMP Snapshot
The GMP Snapshot section provides an indication of unofficial grey-market activity when such information is available.
| Particular | Details |
|---|---|
| IPO GMP | |
| Expected Listing Price | |
| GMP Percentage | |
| Last Updated |
No reliable GMP figure has been included because the IPO price band has not yet been announced and grey-market quotations are unofficial and unregulated.
Arohan Financial Services IPO Review
Arohan Financial Services is a technology-enabled NBFC-MFI with a substantial presence in rural and semi-urban markets. Its AUM increased from ₹5,357.37 crore in FY2023 to ₹7,112.04 crore in FY2024 before declining to ₹6,002.58 crore in FY2025. By December 2025, AUM had increased to ₹6,308.41 crore. The company had approximately 1.95 million active borrowers and 1,073 branches at that point.
The company’s profitability has also moved through a volatile period. PAT increased to ₹313.82 crore in FY2024 but declined to ₹109.69 crore in FY2025. The company reported PAT of ₹122.33 crore for FY2026. Its FY2026 revenue from operations was ₹1,544.88 crore, compared with ₹1,691.75 crore in FY2025.
A key factor disclosed in the DRHP is the RBI’s October 2024 restriction that stopped Arohan from sanctioning and disbursing loans. The restriction was lifted in January 2025 after the company took remedial measures. The DRHP also discusses the resulting impact on disbursements, AUM and credit costs.
The proposed ₹600 crore fresh issue is intended to strengthen the company’s capital base for onward lending. The IPO also includes an OFS of up to 4,04,37,529 shares by existing shareholders. Final valuation, price band, lot size and subscription details will become available only when the company proceeds with subsequent IPO documents.
Arohan Financial Services IPO Strengths
- Technology-enabled NBFC-MFI focused on financial inclusion.
- Approximately 1.95 million active borrowers as of December 31, 2025.
- 1,073 branches across 17 states as of December 31, 2025.
- AUM of approximately ₹6,308 crore as of December 31, 2025.
- Focus on income-generating loans for underserved rural and semi-urban customers.
- Strong institutional investor base.
- Fresh issue proceeds are proposed to strengthen the capital base for onward lending.
- Revenue from operations increased from ₹1,087.53 crore in FY2023 to ₹1,691.75 crore in FY2025.
- FY2026 PAT increased to ₹122.33 crore from ₹109.69 crore in FY2025.
- Proposed listing on both BSE and NSE.
Arohan Financial Services IPO Risk Factors
- The company’s business is exposed to credit and collection risks associated with microfinance lending.
- Borrower repayment capacity can be affected by economic conditions, income disruptions and local events.
- A significant portion of AUM is concentrated in key states including West Bengal, Bihar and Uttar Pradesh.
- The company experienced an RBI restriction on sanctioning and disbursing new loans from October 2024 to January 2025.
- Credit costs increased to 6.06% in FY2025 from 2.87% in FY2024.
- AUM declined in FY2025 following the lending restriction and sector stress.
- The microfinance industry is highly regulated and changes in RBI rules can affect operations.
- The company depends on borrowings and access to funding to support its lending operations.
- Competition among NBFCs, banks, small finance banks and other microfinance institutions can affect growth and pricing.
- Interest-rate movements can affect borrowing costs and lending margins.
- The company operates in markets where borrowers may have limited financial resilience.
- Future IPO terms, valuation and listing timetable are not yet available.
Arohan Financial Services IPO Promoters
The promoters identified in the DRHP are Aavishkaar Venture Management Services Private Limited, Intellectual Capital Advisory Services Private Limited, Vineet Chandra Rai and Swati Rai.
Aavishkaar and Intellecap together held approximately 14.2% of the company, while the individual promoters did not hold shares according to the DRHP-based information. The promoters were not identified as selling shareholders in the proposed OFS.
Arohan Financial Services IPO Promoters Details
| Promoter | Details |
|---|---|
| Aavishkaar Venture Management Services Private Limited | Promoter |
| Intellectual Capital Advisory Services Private Limited | Promoter |
| Vineet Chandra Rai | Promoter |
| Swati Rai | Promoter |
Aavishkaar Group has been associated with Arohan since its development as a financial inclusion business. FMO also identifies the Aavishkaar Group as Arohan’s promoter.
Arohan Financial Services IPO Management Team
Arohan’s management includes experienced professionals from the microfinance and financial-services sector.
Management Team
| Name | Designation |
|---|---|
| Manoj Kumar Nambiar | Managing Director |
| Milind R Nare | Deputy Chief Executive Officer and Chief Financial Officer |
| Anirudh Singh Thakur | Company Secretary and Chief Compliance Officer |
| Vineet Chandra Rai | Promoter Nominee Director |
| Anurag Agrawal | Promoter Nominee Director |
| Dinesh Kumar Mittal | Non-Executive Independent Director |
| John Arunkumar Diaz | Non-Executive Independent Director |
| Ulhas S Deshpande | Non-Executive Independent Director |
| Jose Joseph Kattoor | Non-Executive Independent Director |
| Narasimha Kummamuri Murthy | Non-Executive Independent Director |
The management and board information is based on the company’s DRHP and restated financial disclosures.
Arohan Financial Services IPO Registrar Details
The registrar manages application processing, allotment-related activities, refunds and investor records for the IPO.
| Particular | Details |
|---|---|
| Registrar Name | MUFG Intime India Private Limited |
| Website | MUFG Intime India |
| IPO Allotment Status | |
| Email ID | |
| Contact Number | +91 22 4918 6000 |
MUFG Intime India Private Limited has been identified as the registrar for the proposed IPO.
Arohan Financial Services IPO Lead Manager Details
The Book Running Lead Managers are responsible for coordinating the proposed IPO process and assisting with the issue.
| Particular | Details |
|---|---|
| Lead Manager | DAM Capital Advisors Limited |
| Lead Manager | Motilal Oswal Investment Advisors Limited |
| Lead Manager | SBI Capital Markets Limited |
The three institutions are identified as the Book Running Lead Managers for the proposed issue.
Arohan Financial Services Limited Contact Details
| Particular | Details |
|---|---|
| Company Name | Arohan Financial Services Limited |
| Registered Office | PTI Building, 4th Floor, DP Block, DP-9, Sector-V, Salt Lake, Kolkata – 700091, West Bengal |
| Corporate Office | PTI Building, 4th Floor, DP Block, DP-9, Sector-V, Salt Lake, Kolkata – 700091, West Bengal |
| Website | www.arohan.in |
| Email ID | [email protected] |
| Telephone | +91 33 4015 6000 |
The company’s official materials identify its registered and corporate office in Salt Lake, Kolkata.
How to Check Arohan Financial Services IPO Allotment Status
The allotment status can be checked after the IPO closes and the basis of allotment is finalised.
Through IPO Registrar
Investors can visit the registrar’s official IPO allotment page after allotment is completed and enter the required application or PAN details.
Through BSE
Investors can also check the IPO allotment through the BSE website once the allotment process is completed and the issue is available on the exchange’s IPO platform.
As the Arohan IPO has not yet opened, an allotment result is currently unavailable.
Arohan Financial Services IPO Conclusion
Arohan Financial Services is a technology-enabled NBFC-MFI focused on financial inclusion and income-generating loans for customers in rural and semi-urban India. As of December 31, 2025, it had approximately ₹6,308 crore of AUM, 1.95 million active borrowers and 1,073 branches across 17 states.
The proposed IPO comprises a fresh issue of up to ₹600 crore and an OFS of up to 4,04,37,529 equity shares. The fresh issue proceeds are intended primarily to strengthen the company’s capital base for onward lending, while the OFS proceeds will go to the selling shareholders.
Arohan’s financial performance has varied across recent years. PAT was ₹313.82 crore in FY2024, ₹109.69 crore in FY2025 and ₹122.33 crore in FY2026. The company also reported a recovery in AUM after the lending restriction experienced during FY2025.
The IPO remains at the DRHP stage. Price band, bidding dates, lot size, subscription data, allotment date, listing date and GMP have not been announced. These details should be updated when the company files its subsequent offer documents.
Arohan Financial Services IPO FAQs
What is Arohan Financial Services IPO?
Arohan Financial Services IPO is the proposed initial public offering of Arohan Financial Services Limited, a technology-enabled NBFC-MFI focused on financial inclusion and microfinance lending.
What is the issue size of Arohan Financial Services IPO?
The proposed IPO consists of a fresh issue of up to ₹600 crore and an Offer for Sale of up to 4,04,37,529 equity shares.
Is Arohan Financial Services IPO open?
No. The company has filed its DRHP, but the public subscription dates have not yet been announced.
What is the price band of Arohan Financial Services IPO?
The price band has not yet been announced.
What is the lot size of Arohan Financial Services IPO?
The lot size has not yet been announced.
When will Arohan Financial Services IPO open?
The IPO opening date has not yet been announced.
Who is the registrar of Arohan Financial Services IPO?
MUFG Intime India Private Limited is the registrar identified for the proposed IPO.
Who are the lead managers of Arohan Financial Services IPO?
DAM Capital Advisors Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the Book Running Lead Managers.
What does Arohan Financial Services do?
Arohan Financial Services is an NBFC-MFI that provides income-generating loans and financial inclusion products primarily to underserved customers in rural and semi-urban India.
What is the AUM of Arohan Financial Services?
Arohan’s AUM was approximately ₹6,308.41 crore as of December 31, 2025.
Who are the promoters of Arohan Financial Services?
The promoters are Aavishkaar Venture Management Services Private Limited, Intellectual Capital Advisory Services Private Limited, Vineet Chandra Rai and Swati Rai.
What is the latest profit of Arohan Financial Services?
Arohan Financial Services reported profit after tax of ₹122.33 crore for FY2026, compared with ₹109.69 crore in FY2025.
What is the GMP of Arohan Financial Services IPO?
A reliable GMP figure is not currently available. The company has not yet announced its IPO price band, and grey-market premiums are unofficial and unregulated.
Where will Arohan Financial Services be listed?
The proposed equity shares are intended to be listed on BSE and NSE.
