Arohan Financial Services Limited is a premier NBFC-MFI with operations in economically low-income states of India. The Kolkata based leader offers income generating loans and other financial inclusion-related products to the people who have limited or no access to financial services. Arohan Financial Services IPO will hit the market in 2021.
Table of Contents
About
As of September 30, 2020, Arohan is the fifth biggest NBFC-MFI in the country & the biggest NBFC-MFI in Eastern India (Source: CRISIL Report), based on gross loan portfolio (“GLP”), which is around GRP’s 48.57 billion rupees.
They offer a wide range of services to financially underline clients. Their financial services are classified into credit and insurance services. Their credit services include income generating loans and other loan products for different household reasons.
Their insurance services include life and health insurance covers issued by reputed Indian insurance firms, which they have entered into tie-ups. They also provide term loans to microfinance institutions.
Presence
As of September 30, 2020, They served nearly 2.21 million borrowers in 17 states of India which includes 12 of India’s 14 low-income states (as defined in the CRISIL report).
As of that date, their microfinance business branch network had 710 branches in 11 states and their MSME lending business branch network consisted of 10 branches in 8 states.
They have a Bank Loan Rating of A- (Stable Outlook), MFI Grading of MF1 from CARE Ratings, Social Performance Rating of SP1, COCA Dimensions of C1, all of which are top-notch classified.
Awards
They were certified as “Great Place to Work” and were ranked one of leading the Best firms to Work for in the country by Great Place to Work Institute India in 2020.
In the same year, They were among the best 25 firms To be certified as a Great Place to Work between the banking, financial services and insurance industries, and the top 3 NBFC-MFIs.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Sep-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 5,813.11 | 5,280.82 | 3,853.10 | 2,303.67 | |
| Total Revenue | 507.39 | 934.51 | 651.59 | 327.87 | |
| Profit After Tax | 62.56 | 126.80 | 127.64 | 30.98 | |
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 12.07 | 12.05 | 3 |
| Financial Year 2019 | 14.05 | 14.02 | 2 |
| Financial Year 2018 | 3.52 | 3.51 | 1 |
| Weighted Average | 11.31 | 11.28 | |
| (6 months) Sep. 30, 2020 | 5.75 | 5.74 | – |
Arohan Financial Services IPO Issue
Arohan Financial Services, headquartered in Kolkata has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1800 crore on 14 February, 2021.
The Offer includes a fresh equity of Rs. 850 crore and an offer for sale(OFS) up to 2,70,55,893 equity shares of face value of 10 per share, by the promoters.
They got approval from Securities and Exchange Board of India(SEBI) on 26 April, 2021 to float the initial public offering (IPO) in the market.
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of The offer
- Eastern India’s leading NBFC-MFI and India’s 5th biggest NBFC-MFI with a concentration on low-income regions.
- Their well-established risk management framework, loan approval protocols, and recovery drives are all part of our well-seasoned company strategy.
- With a varied product portfolio, the company takes a customer-centric strategy.
- Infrastructure that is technologically advanced and sustainable.
- Borrowing relationships that are diverse, as well as access to a variety of funding sources.
- Their Promoter-owned company has a professional Board of Directors and management team.
IPO Details
| IPO Opening Date | 2021 |
| IPO Closing Date | 2021 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | 0 |
| Min Order Quantity | 0 |
| Listing At | BSE, NSE |
| Issue Size | 1,750-1,800 cr. |
| Fresh Issue | 850 cr. |
| Offer for Sale | 2,70,55,893 equity share |
IPO Tentative Date
Arohan Financial Services IPO open date is 2021, and the close date is 2021. The issue may list in 2021.
| IPO Open Date | 2021 |
| IPO Close Date | 2021 |
| Basis of Allotment Date | 2021 |
| Initiation of Refunds | 2021 |
| Credit of Shares to Demat Account | 2021 |
| IPO Listing Date | 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability, for every shareholder. |
Arohan Financial Services IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Arohan Financial Services.
Arohan Financial Services IPO GMP
Arohan Financial Services IPO Grey market Premium is o.
Arohan Financial Services IPO Review
The company has not yet announced the price band for the IPO. Once they will announce the price band, we will update the review for the same.
Arohan Financial Services IPO Brokerage views
- Yes Securities : Yet not updated
- Choice Brokering: Yet not updated
- Axis Securities: Yet not updated
- IIFL Securities: Yet not updated
- Trade swift: Yet not updated
- Anand Rathi : Yet not updated
- ICICI Securities: Yet not updated
Arohan Financial Services IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | Credit Access Grameen Limited | 31.10 |
| 2 | Spandana Sphoorty Financial Limited | 12.16 |
| 3 | Bandhan Bank | 17.97 |
| 4 | Ujjivan Small Finance Bank | 16.14 |
Promoters
The Kolkata based leader is part of Aavishkaar Group. They offer business solutions to assist sustainable firms dedicated to social and environmental change.
They had advised big numbers of organizations on inclusive business strategies and provided significant amounts of venture capital financing for social impact businesses.
As of September 30, 2020, Aishishkaar Group had an AUM of around US $ 1.00 billion all around Asia.
Promoter Holding
| Pre Issue Share Holding | 34.32% |
| Post Issue Share Holding |
Arohan Financial Services Subscription
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| July 2021 | 1 | |||||
| July 2021 | 2 | |||||
| July 2021 | 3 |
Arohan Financial Services IPO Prospectus
Contact Details
Arohan Financial Services Limited
PTI Building, 4th Floor, DP 9, Sector 5, Salt Lake,
Kolkata 700 091, West Bengal, India
Tel: +91 33 4015 6000
E-mail: [email protected]
Website: https://www.arohan.in
Registrar
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: [email protected]
Website: http://www.linkintime.co.in
Lead Manager(s)
- Edelweiss Financial Services Limited
- ICICI Securities Limited
- SBI Capital Markets Limited
- Nomura Financial Advisory and Securities (India) Private Limited
We hope we are able to answer all your questions about Arohan Financial Services IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Clarification
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
Note:
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Arohan Financial Services Limited
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Arohan Financial Services Limited applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Arohan Financial Services IPO Opening Date?
Arohan Financial Services IPO will open in 2021.
Arohan Financial Services IPO Listing Date?
Arohan Financial Services IPO will list in 2021.
Arohan Financial Services IPO GMP Today?
Arohan Financial Services IPO Grey Market Premium is INR 0.
Arohan Financial Services IPO Allotment Date?
Arohan Financial Services IPO basis of allotment will be in 2021.
Lot size for Arohan Financial Services IPO?
Lot size for Arohan Financial Services IPO is 0 to 0.
