Arohan Financial Services Files IPO Papers, Plans ₹600 Crore Fresh Issue

Indian non-banking finance company Arohan Financial Services has filed draft papers for its initial public offering (IPO) with market regulator SEBI. The IPO includes a fresh issue of shares worth ₹600 crore along with an offer for sale of up to 4.04 crore shares by existing investors.

Among the investors planning to reduce their stakes are Teachers Insurance and Annuity Association, which will sell around 97 lakh shares, and Michael & Susan Dell Foundation, which plans to offload over 8.7 lakh shares. The IPO comes more than a year after the Reserve Bank of India lifted lending restrictions imposed on the company and other NBFCs over pricing concerns.

For the financial year ended March 31, 2025, Arohan reported a 65% decline in profit due to rising expenses, although its net interest income grew nearly 13%. The company said the fresh issue proceeds will be used to strengthen its capital base. The IPO is being managed by DAM Capital Advisors, Motilal Oswal Investment Advisors and SBI Capital Markets.

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