Arohan Financial Revives IPO Plans with INR 1,500 Crore Issue After RBI Curbs Lifted

Expert Analysis:

• IPO Revival and Regulatory Comfort: The planned INR 1,500 crore IPO and DRHP filing by March 2026 indicate renewed confidence after the RBI lifted lending curbs on 3 January 2025, following Arohan’s process overhaul and fair-pricing commitments.

• Balanced Issue Structure: A near 50:50 mix of fresh issue and offer for sale reflects a dual objective—raising capital to fund growth while providing liquidity to existing shareholders.

• Healthy Scale with Improving Discipline: FY25 revenue of INR 1,581 crore and net profit of INR 110 crore highlight operational scale, even as asset quality moderated with GNPA at 2.77% and NNPA at 0.47%.

• Conservative Growth Framework: Self-imposed caps of 12% over cost of funds on margins and 25% annual growth underscore a cautious strategy to maintain underwriting quality and regulatory confidence ahead of listing.