Left Menu
Development News Edition

Arohan Financial shelves IPO plan for now, to focus on Rs 500 cr

PTI | Kolkata | Updated: 17-11-2019 13:48 IST | Created: 17-11-2019 13:46 IST
Arohan Financial shelves IPO plan for now, to focus on Rs 500 cr
Image Credit: Pixabay

Microfinance institution (MFI) Arohan Financial Services Ltd has put on hold its proposed initial public offering (IPO) for "at least 18-24 months", owing to "unexciting" market conditions for the past one year, Managing Director Manoj Kumar Nambiar said. The Kolkata-based company, which operates in 11 "low- income" states in east, northeast and central India, will, instead, focus on raising around Rs 1,800 crore in an external round of borrowing, he said.

"IPO is not on the cards right now as markets have not been very exciting for the past one year now. So, after re-evaluating the situation, we have decided to opt for an external round of borrowing than go for an IPO. We would look at listing after 18-24 months," Nambiar told PTI. Arohan Financial, a part of the Aavishkaar-Intellecap Group, would raise Rs 500 crore through primary borrowing and the rest by way of "secondary exits" (of older investors).

It has finalized a set of four investors for the primary round and hopes to complete the fundraising by January end next year. "The funds would help us improve our capital adequacy, look at new products and go deeper into existing geographies and foray into newer ones," the MD said. The company will enter the Rajasthan market by the first quarter of 2020-21 fiscal, Nambiar said, adding, the MFI set foot in Manipur in October, taking the total number of states to 11.

Arohan Financial claims to have a customer base of about 2.2 million, comprising mainly of women in rural and semi-urban towns, and a branch network of 700. The microfinance institution counts West Bengal, Odisha, Assam and Bihar among its "highly-penetrated" states.

Nambiar said the company has drawn up a '2025 Plan' of growing its loan portfolio by five-six times, expanding the number of branches to 2,000 and customer base to 5 million. "By 2025, we aim to achieve a loan portfolio of Rs 25,000 crore from about Rs 4,600 crore as on November 30, making us feature among the top three financial inclusion players in the geographies that we are present in," he said.

According to a report by the RBI-recognised Microfinance Institutions Networks (MFIN), the total number of microfinance accounts stood at 9.33 crore as on March 31, and its members collectively disbursed loans worth Rs 82,928 crore in 2018-19.


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Smart healthcare: IoT redefining the way healthcare is delivered

As the world is embracing the new wave of digitalization triggered by the pandemic and the arrival of 5G, the adoption of IoT devices will further boom. With adoption set to soar, IoT security issues and other challenges cant be ignored any...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

A child or young person newly infected with HIV every 100 seconds last year: UNICEF

A child or young person under the age of 20 was newly infected with HIV approximately every minute and 40 seconds last year, bringing the total number of children living with HIV globally to 2.8 million, the UNICEF said. The UNICEF report R...

GLOBAL MARKETS-Stocks dip on U.S. jobs data, oil climbs further

MSCIs all-country world index hits fresh record before slipping 2020 asset performance httptmsnrt.rs2yaDPgn Global stock market outlook httpstmsnrt.rs3nT0J5r Updates prices, changes comment, dateline previous London By Rodrigo CamposNEW Y...

Iran swaps jailed British-Australian academic with Iranians jailed abroad - report

Iran has exchanged jailed British-Australian academic Kylie Moore-Gilbert with three Iranians jailed abroad, a website affiliated to Irans state TV reported on its Twitter account on Wednesday.An Iranian businessman and two Iranian citizens...

TN launches right of way portal to accord permission to telecom infra cos

The Tamil Nadu government has launched a portal with the aim of providing hassle-free consent to telecommunication and infrastructure provider companies in the state. Chief Minister K Palaniswami launched the portal, developed by the state ...

Give Feedback