Arohan Financial Services IPO: DRHP, ₹600 Crore Fresh Issue, Financials and Review

Key market update (8 November 2026): Arohan filed its DRHP on 15 May 2026. We found no report of SEBI observations as of 8 November 2026. Meanwhile, Arohan reported a standalone net profit of ₹98.82 crore for the September 2026 quarter, up from ₹19.53 crore a year earlier (reported).

Arohan Financial Services IPO overview

The Arohan Financial Services IPO is the Kolkata microfinance lender’s second attempt to list. Arohan filed its draft red herring prospectus (DRHP) with SEBI on 15 May 2026. The issue has a fresh issue of ₹600 crore and an offer for sale (OFS) of up to 4.04 crore shares by existing investors.

Reports put the total size at about ₹1,400 crore. However, the final size depends on the price band, which is not out yet. Arohan is part of the Aavishkaar Group and lends small loans, mainly in eastern and north-eastern India. For other finance names in the queue, see our Truhome Finance IPO page and the upcoming and rumored IPOs list.

Arohan Financial IPO details: what we know so far

Arohan IPO timeline

• 2006: Arohan makes its first loan from a single branch in Kolkata.
• 2012: Arohan becomes part of the Aavishkaar Group (ICRA).
• February to April 2021: First DRHP filed; SEBI gives observations on 23 April 2021. The approval later lapsed without a launch.
• October 2024 to January 2025: RBI restrictions on Arohan’s lending are imposed and then lifted (reported).
• January 2026: Managing director Manoj Kumar Nambiar says Arohan plans a ₹1,500 crore IPO in mid-FY27 (PTI).
• 15 May 2026: New DRHP filed.
• 31 October 2026: September quarter results show profit of ₹98.82 crore (reported).

About Arohan Financial Services

Arohan is a non-banking finance company that works as a microfinance institution (NBFC-MFI). It gives small, income-generating loans to low-income borrowers. As of 31 March 2026, it had a loan portfolio of ₹7,426 crore, about 20 lakh borrowers and 1,069 branches across 318 districts in 16 states, according to its FY26 annual report.

Reports describe Arohan as the second-largest NBFC-MFI in eastern India. In addition, it is adding secured products such as gold loans and loans against property, according to its management (reported).

Arohan financials: FY24 to FY26

The pattern shows the microfinance cycle. Profit fell about 65% in FY25 as loan losses rose across the sector. In FY26, revenue fell 8.5% because the average loan book was smaller. However, credit costs eased, so profit after tax rose 11.5% (Calculated).

Asset quality and capital

• Gross NPA: 1.13% at March 2026, down from about 2.8% a year earlier (reported for FY25).
• Capital adequacy (CRAR): 27.61%, well above the regulatory minimum.
• Net worth: ₹2,158 crore at March 2026.
• Borrowings: about ₹5,900 crore, mostly term loans.

As a result, the balance sheet looks stronger than in FY25. On the other hand, FY26 return on equity was only about 5.7% on year-end net worth (Calculated). The September 2026 quarter profit of ₹98.82 crore suggests a sharp pick-up, but one quarter is not a trend.

Who is selling in the Arohan OFS?

The OFS of up to 4.04 crore shares comes from long-time investors. Reported sellers include Aavishkaar Goodwell India Microfinance Development Company-II, Tano India Private Equity Fund II, Maj Invest Financial Inclusion Fund II, TIAA and the Michael & Susan Dell Foundation.

One report valued the OFS at about ₹800 crore. If that holds, it implies roughly ₹198 per share (Calculated). That is not a price band; the actual band will appear only in the RHP.

What the ₹600 crore fresh issue is for

The fresh issue will add to Arohan’s capital base to support future lending, according to reports on the DRHP. For a lender, new equity raises the amount it can borrow and lend while staying within capital rules. Meanwhile, the OFS money goes to the selling investors, not the company.

Risks to watch

• Unsecured loans: microfinance loans have no collateral, so stress among borrowers shows up quickly as losses.
• Regional concentration: most lending is in eastern and north-eastern states.
• Regulation: RBI imposed and then lifted lending curbs in 2024 and 2025 (reported). Rules on pricing and borrower debt limits can change.
• Earnings swings: profit fell from ₹314 crore in FY24 to ₹110 crore in FY25 before recovering.

What happens next

First, SEBI must issue observations on the DRHP. Next, Arohan files a red herring prospectus with the price band and dates. Finally, the issue opens for three working days. Until then, there is no lot size and no meaningful grey market premium. We will add the Scouter Reading once a price band exists.

Arohan Financial IPO review: who it may suit

The IPO may suit investors who understand microfinance cycles and want exposure to rural credit in eastern India. However, investors who prefer steady earnings may want to see a few more quarters of stable credit costs first. This is not investment advice.

Arohan Financial IPO: frequently asked questions

More Arohan Financial IPO questions

Disclaimer: This article is for information only and is not investment advice. Company figures are from Arohan’s FY26 annual report and ICRA; DRHP terms are as reported. Wait for SEBI observations, the RHP and exchange notices before making any decision. Data as of 8 November 2026.