The public offer comprises a fund raise via a fresh issuance of shares amounting to Rs 850 crore. The company will have an Offer for Sale (OFS) of 27,055,893 equity shares by Maj Invest Financial Inclusion Fund II K/S, Michael & Susan Dell Foundation, Tano India Private Equity Fund II, TR Capital III Mauritius and Aavishkaar Goodwell India Microfinance Development Company II Ltd collectively.
The portion reserved for qualified institutional buyers will be up to 50 per cent of the offer, non-institutional investors will have up to 15 per cent of the portion reserved while up to 35 per cent will be reserved for retail investors. The portion reserved for eligible employees will be up to 5 per cent of the offer.
As stated in the DRHP, the company may decide to undertake a pre-IPO placement of Rs 150 crore subject to consultation of the merchant bankers. Net proceeds from the fresh issue will be utilised for augmenting the company’s capital base to meet their future capital requirements which is expected to be deployed in FY22.
As on September 30, 2020, the Kolkata-based company which commenced its operations in 2006, has served approximately 2.21 million borrowers across 17 states and stands as the largest NBFC-MFI in eastern India as per gross loan portfolio. It offers a broad range of products across credit and financial instruments.
Between FY17-FY20, Arohan Financial Services, as per a CRISIL report, had the second highest gross loan portfolio growth at 68 per cent CAGR and stood amongst top five NBFC-MFIs in India. Arohan Financial also had the highest customer growth at 49 per cent CAGR between FY18-FY20. The company’s disbursements, AUM, total comprehensive income has been growing YOY and as on FY20 stood at a CAGR of 110.03 per cent.
The microfinance business of the company operates out of 710 branches across 11 states and the MSME lending business has a reach across eight states through its 10 branches.
Edelweiss Financial Services Ltd, ICICI Securities Ltd, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited are the book running lead managers (BRLMs) to the issue.
