Arohan Financial is involved in providing microfinancing solutions to the unbanked section of the population. It has filed its DRHP for Rs. 1,800 crores with the market regulator. This will include Rs. 850 crores through fresh equity shares. The balance will comprise the secondary component of 2,70,55,893 shares.
Arohan Financial Services has started preparing to launch an IPO in view of the bullishness of the market. The company plans to bring an IPO of Rs 1500 crore. According to investment banking sources, this includes a primary issue of shares worth Rs 700 crore.
Arohan Financial Services Financial Highlights
| For the Year/Period Ended | Total Revenue (in million) | Total Assets (in million) | Total Expenses (in million) | Profit After Tax (in million) |
| 30 September 2020 | Rs. 5073.93 | Rs. 58,131.17 | Rs. 4258.83 | Rs. 625.64 |
| 31 March 2020 | Rs. 9345. 06 | Rs. 52,808.21 | Rs. 7,669.20 | Rs. 1268.01 |
| 31 March 2019 | Rs. 6515.93 | Rs. 38,530.97 | Rs. 4,744.56 | Rs. 1,276.40 |
| 31 March 2018 | Rs. 3278.71 | Rs. 23,036.70 | Rs. 2804.40 | Rs. 309.75 |
The Kolkata-based microfinance company, however, has also kept the option of the rights issue and private equity investment open. After the Corona period, the economy is once again on the road to recovery. In such a situation, Arohan Financial Services expects that the number of borrowers will increase.
According to ET, Manoj Kumar Nambiar, managing director of the company, said, “Arohan is looking to raise money from the market for its growth plan. The company has all the options to raise funds – rights issue, raising funds from PE and IPO.” There is also an option. The company’s board is currently looking into it.”
Arohan company is in talks with this sub-investment bankers like SBI Capital Markets, ICICI Securities, and Investment bankers like Nomura.
The proposed offer of the company can also include OFS (Offer for Sale) in which the existing investors of the company can also sell their stake in the market.
The company’s current investors include companies such as Avishkar Goodwill, Maze Investments, and the Michael & Susan Dell Foundation. In the recent past, Dell wanted to sell its stake in Arohan Financial.
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