Arohan Financial Services IPO – Review, Allotment, Subscription, GMP & DRHP
Last Updated Date: Nov 16, 2022Let’s have a detailed review of the company and analytics of the Arohan Financial Services IPO release date, IPO offer price, subscription, Arohan Financial Services Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
| Face Value | Rs 10 |
| Price Band | Rs [●] |
| Listing At | BSE, NSE |
| Min. Order Quantity | NA |
| Listing Date | NA |
| Offer for Sale | Rs Million |
| Fresh Issue | Rs Million |
| IPO Size | Rs Million |
| Tick Size | 1 |
Arohan Financial Services IPO is listed at [●] premium. Check out the live share price by clicking on the below link.
| Arohan Financial Services Share Price – Live Performance |
Arohan Financial IPO – Summary
They leading NBFC-MFI with operations in financially under-penetrated Low Income States of India. They provide income generating loans and other financial inclusion related products to customers who have limited or no access to financial services.
As of September 30, 2020, our Gross Loan Portfolio (“GLP”) was Rs. 48.57 billion. They were the largest NBFC-MFI in Eastern India and the fifth largest NBFC-MFI in India based on Gross Loan Portfolio as of September 30, 2020.
Between Fiscal 2017 to Fiscal 2020, they 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 Fiscal 2018 to Fiscal 2020
The Promoters of this company are AAVISHKAAR VENTURE MANAGEMENT SERVICES PRIVATE LIMITEDAND INTELLECTUAL CAPITAL ADVISORY SERVICES PRIVATE LIMITED. The lead manager to the issue is Edelweiss Financial Services Limited, ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, SBI Capital Markets Limited and the Registrar to this issue is Link Intime India Private Limited.
Arohan Financial Services IPO Date
The opening and the closing date of IPO of Arohan Financial Services Limited is not available yet.
Check out Related IPO Links:
| Arohan Financial Services IPO GMP |
| Allotment of Arohan Financial Services IPO |
Arohan Financial Services Limited IPO Subscription
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – | ||||
| 2nd Day – | ||||
| 3rd Day – | ||||
| Shares Offered or Net Issue |
The shares subscribed by the public will be updated here.
Arohan Financial Services IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.
Arohan Financial Services Limited IPO Listing Date
Find the dates below on basis of allotment, refund, listing and more:
| Basis of Allotment Finalization | – |
| Refunds Initiation | – |
| Credit of Shares to Demat Account | – |
| Share Listing Date | – |
Arohan Financial Services IPO Price Band / Cash Price
The face value of each share is Rs.10, but the price band of the IPO is Rs.[●]
Arohan Financial Services IPO Equity Size
This Initial Public Issue of NA Equity Shares of Rs.10 each for cash at a price of Rs.[●] per equity share aggregating to Rs.[●] Million.
Arohan Financial Services IPO Share Offering
Net Issue: The Issue (excluding the Market Maker Reservation Portion) of [●] equity Shares of Rs.10/ each.
Issue Size: NA Equity Shares of Rs.10 each, aggregating to Rs.[●] Million
Arohan Financial Services IPO – Live Performance
The listing date of this IPO is [●] . You can check the live performance of the IPO here, only after it is listed on exchanges.
| Live IPO Performance – Arohan Financial Services Share Price |
Arohan Financial IPO Grey Market Premium
The Arohan Financial Services IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.
Arohan Financial IPO – Company Overview
They are registered with and their business is regulated by the RBI as an NBFC-MFI. They commenced microfinance operations in 2006. As of September 30, 2020, they served approximately 2.21 million borrowers in 17 states.
These included 12 of the 14 Low Income States in India (as defined in the CRISIL Report). As of that date, their microfinance business’ branch network consisted of 710 branches in11 states and our MSME lending business’ branch network consisted of 10 branches in eight states. They offer a broad range of products to financially underserved customers.
They are focussed on optimising our customer sourcing channels, maintaining well-established loan origination, credit underwriting and loan management processes, as well as adopting and integrating technology into our business to improve lending outcomes and operational efficiency.
Arohan Financial Services IPO Business Verticals
Their operations team is led by six zonal business heads, each zone representing one or two contiguous states. Each zonal business head has three to six regional head reports and each regional head has four to seven area manager reports.
Each area manager is responsible for four to six branches led by branch heads. They consider that field staff, consisting of area managers and branch employees, best represent our brand to our customers.
Arohan Financial IPO – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & Million) | ||||
| Sep 20 | Mar 20 | 31-Mar 19 | Mar 18 | |
| Total Assets | 58,131.17 | 52,808.21 | 38,530.97 | 23,036.70 |
| *Total Revenue | 5,073.93 | 9,345.06 | 6,515.93 | 3,278.71 |
| Total Expense | 4,258.83 | 7,669.20 | 4,744.56 | 2,804.40 |
| Profit After Tax | 625.64 | 1,268.01 | 1,276.40 | 309.75 |
Earnings per Equity Share (in Million)
| Sep 20 | Mar 20 | 31-Mar 19 | Mar 18 | |
| Basic | 5.75 | 12.07 | 14.05 | 3.52 |
| Diluted | 5.74 | 12.05 | 14.02 | 3.51 |
From Fiscal 2018 to Fiscal 2020, our disbursements, AUM, Total Income and Total Comprehensive Income grew at a CAGR of 36.19%, 49.52%, 68.83%, and 110.03%, respectively.
As of September 30, 2020, they also had 10 MSME lending branches representing MSME lending business with GLP of ₹1.81 billion, which represents 3.72% of our total GLP.
Arohan Financial IPO – Promoters
The Promoter of this company is:
- AAVISHKAAR VENTURE MANAGEMENT SERVICES PRIVATE LIMITED
- INTELLECTUAL CAPITAL ADVISORY SERVICES PRIVATE LIMITED
List of Related Parties (Key Managerial Personnel)
- Manoj Kumar Nambiar, Managing Director
- Milind Ramchandra Nare, Chief Financial Officer
- Anirudh Singh G. Thakur, Head –Legal, Compliance and Company Secretary
Competitive Strengths of Arohan Financial Services
- Largest NBFC-MFI in Eastern India
- The fifth largest NBFC-MFI in India with a focus on Low Income States
- Customer centric approach with diverse product offerings
- Advanced and scalable technology-enabled infrastructure
Arohan Financial IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | Up to [●] Equity Shares aggregating to up to Rs. 8,500 million
and Up to 27,055,893 Equity Shares aggregating to up to Rs. [●] million |
| of which: | |
| Issue Reserved for the Market Makers | Up to [●] Equity Shares aggregating up to Rs.[●] Million |
| Net Issue to the Public | Up to [●] Equity Shares aggregating up to Rs.[●] Million |
| Of which: | |
| Retail Investors Portion | Up to [●] Equity Shares aggregating to up to Rs. [●] million |
| Other than Retail Individual Investors | Not more than [●] Equity Shares |
| Equity Shares outstanding prior to the Issue | 120,177,303 Equity Shares |
| Equity Shares outstanding after the Issue | [●] Equity Shares |
Arohan Financial Services IPO Issue Object
Their Company proposes to utilise the Net Proceeds towards funding the following objects:
1. Augmenting the capital base of our Company
2. Proposed Schedule of Implementation and Deployment of the Net Proceeds
3. Interim Use of Net Proceeds
Business strategies of Arohan Financial Services
- Focus on growing our business in financially underpenetrated Low Income States
- Increase customer touchpoints by continuing to cross-sell product suite
- Continue to improve customer experience
- Optimise our operational expenses by developing technology infrastructure
Arohan Financial Services IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Promoter ownership and experienced Board and management teams
- Diverse borrowing relationships and access to multiple sources of capital
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-20 | 12.07 , 12.05 | 13.17% | 91.32 |
| Mar-19 | 14.05 , 14.02 | 18.31% | 87.26 |
| 31-Mar-18 | 3.52 , 3.51 | 8.11% | NA |
Arohan Financial Services IPO : Competitive Peers
| Face Value (Rs.) | P/E | EPS (Rs.) | Return on Net Worth (%) | Total Income (Rs. in Crores) | |
| Arohan Financial Services | 10 | [●] | 8.86 | 73.11 | 20.43 |
| Listed Peers | |||||
| CreditAccess Grameen Limited | 10 | 31.10 | 23.20 | 12.27% | 3,354.90 |
| Spandana Sphoorty Financial Limited | 10 | 12.16 | 56.21 | 13.40% | 3,518.29 |
| Bandhan Bank | 10 | 17.97 | 18.78 | 19.90% | 30,237.38 |
| Ujjivan Small Finance Bank | 10 | 16.14 | 2.19 | 10.98% | 3,499.18 |
Arohan Financial Services IPO – Lead Managers
| Lead Managers |
| Edelweiss Financial Services Limited
ICICI Securities Limited ICICI Centre Nomura Financial Advisory and Securities (India) Private Limited SBI Capital Markets Limited |
Arohan Financial Services IPO – Registrar to offer
| Registrar to the Offer |
|
Link Intime India Private Limited
C-101, 247 Park, 1st Floor
L.B.S. Marg, Vikhroli West,
Mumbai 400 083, Maharashtra, India
Tel: +91 22 49186200
E-mail: arohan.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor Grievance ID: arohan.ipo@linkintime.co.in
Contact person: Shanti Gopalkrishnan
SEBI Registration No. : INR000004058
|
Arohan Financial Services IPO – Other Details
- Statutory Auditor – Walker Chandiok & Co LLP
- Legal Counsel to the Company – NA
- Bankers to the Company – Axis Bank Limited, ICICI Bank Limited, IDFC First Bank, State Bank of India
Arohan Financial Services IPO Review by Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
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