India: Arohan Financial plans to raise up to $247m via share sale

Photo: Reuters

Kolkata-based Arohan Financial Services Ltd on Monday filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) to raise funds in an initial public offering (IPO).

The Aavishkaar group promoted lender is planning a 1,750-1,800 crore IPO, a person aware of the matter said requesting anonymity.

The public offer includes new shares worth 850 crore, and an offer for sale of 27.06 million equity shares by Maj Invest Financial Inclusion Fund II, Michael and Susan Dell Foundation, Tano India Private Equity Fund II, TR Capital III Mauritius and Aavishkaar Goodwell India Microfinance Development Co. II Ltd.

The company said it may also opt for a pre-IPO placement of 150 crore. Proceeds from the IPO will be used to meet the company’s future capital requirements. In September, the lender’s capital-to-risk assets ratio (CRAR) was at 25.78%, of which Tier I capital stood at 21.01%. Its loan portfolio was at 4,857 crore as on 30 September. It serves 2.21 million borrowers in 17 states.

In FY20, Arohan posted revenue of 921.80 crore, up 42% from a year ago, while net profit was at 126.80 crore, down 0.65% year-on-year. Its gross non-performing assets was at 2.43% in September, but the lender warned that its asset quality may deteriorate with growing instances of non-repayment of loans following the covid-19 outbreak. Edelweiss Financial Services, ICICI Securities, Nomura and SBI Capital Markets are managing the Arohan IPO.

This article was first published on livemint.com.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.