Indian non-bank finance firm Arohan Financial Services has filed for an initial public offering, according to draft papers dated Friday and filed with the market regulator.
The company is selling new shares worth 6 billion rupees ($62 million) while existing investors are looking to offload up to 40.4 million shares.
The filing comes more than a year after the Reserve Bank of India removed lending restrictions it had imposed on the firm and other non-bank lenders due to “usurious” pricing and high markups.
Among existing investors, U.S. retirement financial services firm Teachers Insurance and Annuity Association, which holds a 12.06% stake in the company, is selling about 9.7 million shares, while the Michael & Susan Dell Foundation, with a 2.05% stake, is looking to offload 874,614 shares.
For the year ended March 31, 2025, Arohan Financial Services posted a 65% drop in profit, weighed down by a surge in expenses. Its net interest income rose nearly 13%.
The company will use proceeds from the sale of new shares to boost its capital base.
DAM Capital Advisors, Motilal Oswal Investment Advisors and SBI Capital Markets are managing the issue.
After a strong run for Indian IPOs in 2025, sentiment towards floats has weakened this year amid conflict in the Middle East. Still, big-ticket IPOs such as Jio Platforms and National Stock Exchange are in the offing.
($1 = 95.9600 Indian rupees)
Reuters
