Arohan Financial Services Files for IPO to Expand Capital Base

Arohan Financial Services, a microfinance institution, has filed papers with SEBI to raise funds via an IPO. This includes a fresh issue of shares valued at Rs 600 crore and a sale of 4.04 crore shares by current investors. The IPO aims to enhance the company's capital base.

In a strategic move to strengthen its financial standing, Arohan Financial Services has announced its intention to raise capital through an initial public offering (IPO). The microfinance institution has submitted preliminary papers to the Securities and Exchange Board of India (SEBI), detailing plans for a fresh issue of shares worth Rs 600 crore.

The offering will not only introduce new shares but also include an offer for sale of 4.04 crore shares by existing investors, such as US Teachers Insurance and Annuity Association and the Michael & Susan Dell Foundation, according to the draft red herring prospectus (DRHP) filed with SEBI.

The capital raised will be channeled towards enhancing Arohan's capital base and general corporate purposes. As part of its growth trajectory, Arohan’s assets under management stood at Rs 6,308 crore as of December 2025, with operations extending across 1,073 branches in 17 Indian states.