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 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.