The Arohan Financial Services Date Will Be Updated Soon .
Arohan Financial Services, founded in 1991, is one of India’s top NBFC-MFIs. In 2006, the company launched its microfinance operation. It works in low-income, underserved areas of the country. Arohan Financial Services provides credit as well as insurance products. The former category comprises income-generating loans and other financial aid forms, whereas the latter includes life and health insurance products.
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Price Range
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Face Value
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GMP
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Arohan Financial Services GMP
The Arohan Financial Services IPO GMP is ₹[].
IPO Overview
Arohan, set up in 2006, is the largest NBFC-MFI in the eastern Indian region, with a Rs 4600 crore gross loan portfolio in FY21. In February, it raised Rs 189 crore from ASK Financial Holding, Kiran Vyapar Ltd and Arohan ESOP Trust at Rs 210 per share. The Gross Loan Portfolio (“GLP”) was Rs. 48.57 billion, making it the largest NBFC-MFI in Eastern India and the fifth largest NBFC-MFI in India based on the Gross Loan Portfolio. Between FY17 to FY20, it had the second-highest GLP CAGR of 68.00% among the top five NBFC-MFIs in India, as well as the highest customer growth among the top five NBFC-MFIs at 49.00% CAGR between FY18 and FY20.
Arohan Financial Services IPO Financials
| For the Year/Period Ended | Profit After Tax (in million) | Total Revenue (in million) | Total Assets (in million) | Total Expenses (in million) |
| 30 September 2020 | 625.64 | 5073.93 | 58,131.17 | 4258.83 |
| 31 March 2020 | 1268.01 | 9345.06 | 52,808.21 | 7,669.20 |
| 31 March 2019 | 1,276.40 | 6515.93 | 38,530.97 | 4,744.56 |
| 31 March 2019 | 309.75 | 3278.71 | 23,036.70 | 2804.40 |
Arohan Financial Services Peer Comparison
| Company | Market Capitalisation Growth rate (Last 5 Years) | TTM P/E Ratio | Dividend Yield |
| Tata Investment Corporation | 129.81% | 37.97 | 2.08 |
| Mannapuram Finance | 160.40% | 10.31 | 0.95 |
| L&T Finance | 5.55% | 10.31 | – |
| Equitas Holdings | -35.16% | 9.39 | 2.30 |
| Shriram Transport Finance | 13.72% | 14.68 | 1.32 |
Company Profile
Arohan Financial Services Limited is a leading NBFC-MFI (micro-finance institution) with operations in financially under-penetrated low-income states of India. It provides income-generating loans and other financial inclusion-related products to customers who need access to more financial services. It offers a broad range of products to financially underserved customers. These included 12 of the 14 Low-Income States in India. Its microfinance business branch network consisted of 710 branches in 11 states, and the MSME lending business branch network consisted of 10 branches in eight states. It serves approximately 2.21 million borrowers in 17 states.
The offerings of Arohan Financial Services include credit as well as insurance products. The former includes income-generating loans and other financial assistance, while the latter covers life and health insurance products. The financial products are classified into credit and insurance products. It operates in low-income, unpenetrated states of the country.
IPO Strenghts
- Experienced promoters and a competent management team.
- Well-established relationships with a loyal customer base.
- Access to markets worldwide, enabling global reach.
IPO Weakness
- Heavy reliance on customers based in the United States.
- Need to adhere to multiple laws and regulations in these countries to ensure compliance.
- Competition from other players in the market.
