Arohan Financial Services IPO

Arohan Financial Services Limited is a technology-enabled NBFC-MFI providing microfinance and income-generating loans to customers, primarily in rural and semi-urban areas. The company commenced its microfinance operations in 2006 and has developed a branch-led and digitally enabled operating model focused on financial inclusion. It provides loans primarily to women borrowers through the Joint Liability Group model and also offers additional financial and household-oriented products through its distribution network.

As of the period disclosed in the IPO documents, Arohan operated through a large branch network across multiple Indian states and served approximately 1.95 million customers through 1,073 branches across 17 states. Its operations are supported by technology platforms including its proprietary credit-scoring model and AI-enabled tools used for underwriting and collections. The company also provides products such as insurance and household financing solutions alongside its core microfinance offerings.

The company describes itself as the second-largest NBFC-MFI in Eastern India based on presence of corporate offices among peer NBFC-MFIs in terms of AUM, with a focus on under-penetrated rural and semi-urban markets. Its DRHP highlights customer-centric product offerings, scalable AI-enabled technology infrastructure, proprietary credit scoring and diversified borrowing relationships as qualitative factors relevant to the proposed offer.

Arohan Financial Services operates in the NBFC-MFI segment, with a focus on providing income-generating loans and financial inclusion products to customers in rural and semi-urban markets. The company has developed a branch-led and technology-enabled model and serves a large customer base across multiple states. Its DRHP highlights proprietary credit scoring, AI-enabled technology, diversified borrowing relationships and its presence in under-penetrated markets as important aspects of its business model.

The proposed IPO comprises a Fresh Issue of up to ₹600 crore and an Offer for Sale of up to 4,04,37,529 equity shares. The company intends to use the Net Proceeds from the Fresh Issue primarily to strengthen its capital base for onward lending, with the remaining amount proposed for general corporate purposes. A stronger capital base can support the company's lending operations and future portfolio expansion, although the ultimate impact will depend on the company's ability to deploy additional capital while maintaining asset quality and regulatory capital requirements.

Arohan's financial performance has varied considerably across the reported periods. Revenue from operations was ₹1,691.75 crore in FY2025 compared with ₹1,628.69 crore in FY2024, while PAT declined from ₹313.82 crore to ₹109.69 crore. The nine months ended December 2025 reported revenue from operations of ₹1,128.13 crore and PAT of ₹60.74 crore. The company continues to operate in a credit-sensitive microfinance environment where borrower repayment, provisions, funding costs, geographic concentration and regulatory requirements can materially affect financial results. Since the price band has not been announced, the IPO valuation cannot yet be assessed using the final Offer Price.

Arohan Financial Services IPO applications can be made through ASBA or UPI using a supported broker or bank when the issue opens for subscription. Since the final price band, lot size and bidding dates have not yet been announced, investors will need to use the final IPO details published in the RHP and exchange notices when the issue becomes available.

Through UPI

1. Log in to your stockbroker app or website.
2. Go to the IPO section.
3. Select Arohan Financial Services IPO when it becomes available for bidding.
4. Enter the number of lots based on the final lot size.
5. Select the bid price within the announced price band.
6. Retail investors may select the Cut-off option where available.
7. Enter your valid UPI ID linked to your bank account.
8. Submit the IPO application.
9. Open your UPI application when the mandate request is received.
10. Approve the UPI mandate using your UPI PIN.
11. The application amount will be blocked in the linked bank account.
12. If shares are allotted, the required amount will be debited and shares will be credited to the Demat account; otherwise, the blocked amount will be released according to the applicable IPO process.