Arohan Fin defers IPO plans, to focus on capital strength
- ByStartupStory | April 14, 2022
After abandoning plans to earn 850 crores in an initial public offering, Arohan Financial Services, the Aavishkaar Group’s microfinance business, may obtain 150 crores from existing investors (IPO). After boosting its financial position, the lender may seek new clearance for the IPO.
“The validity of our present IPO ticket expires in the last week of April. Because the market has improved, refiling for an IPO is a viable possibility “Manoj Kumar Nambiar, managing director of Arohan, told ET. “Even if we intend to seek new approval, we won’t be able to do it before the middle of June. We may be able to raise roughly 150 crores in the interim. We’re talking to our current investors about it “Nambiar explained.
The capital raising strategy will be discussed at the company’s board meeting on May 22. The equity raise is most likely to take place in the April-June timeframe.
Investors who were previously hesitant to participate in microfinance enterprises due to the high levels of post-pandemic stress may now reconsider after interest rate deregulations permitted lenders in the sector to hike lending rates.
Arohan aspires to influence 20 million lives by 2025, driven by its vision to empower underprivileged households and small enterprises through a spectrum of financial services in a way that is sustainable for all stakeholders. Arohan is one of India’s few NBFC-MFIs that can provide loans ranging from INR 10,000 to INR 100 lakh. It collaborates with strong, local partners on the ground to expand its reach into the most remote areas of our target low-income geographies.
Follow Startup Story
Related Posts
