Microlender Arohan files IPO papers, plans to raise Rs 1,750-

Leading microfinance companyArohan Financial Services Ltd has filed papers with thecapital market regulator SEBI for an initial public offering(IPO) and is planning to raise Rs 1,750-1,800 crore, sourcessaid on Monday.

The public offer comprises the raising of fund via afresh issuance of shares, amounting to Rs 850 crore and anOFS (offer for sale) of 27,055,893 equity shares by a sectionof the existing investors, they said.

Promoted by Aavishkaar Group, the company may decideto undertake a pre-IPO placement of Rs 150 crore subject toconsultation of the merchant bankers.

According to the Draft Red Herring Prospectus filedwith the regulator, the company may decide to undertake a preIPO placement of Rs 150 crore subject to consultation of themerchant bankers.

A portion reserved for qualified institutional buyerswill be up to 50 per cent of the offer, while up to 15 percent will be kept for non-institutional investors and up to 35per cent for retail investors.

The portion reserved for eligible employees will be upto five per cent of the offer.

''The net proceeds from the fresh issue will beutilised for augmenting the company's capital base to meet itsfuture requirements, which is expected to be deployed inFY22,'' the microfinance firm said.

The Kolkata-based company, which commenced itsoperations in 2006, claimed that it has served approximately2.21 million borrowers across 17 states and stands as thelargest NBFC-MFI in eastern India as per gross loan portfolio.

The microfinance business of the company is beingoperated through 710 branches across 11 states and the MSMElending covers eight states through its 10 branches.

Edelweiss Financial Services Ltd, ICICI SecuritiesLtd, Nomura Financial Advisory and Securities (India) PrivateLtd and SBI Capital Markets Ltd are the Book Running LeadManagers to the issue.