Arohan Financial in talks with PE funds to raise capital
Kolkata, Jun 20( PTI) Microfinance institution Arohan Financial Services Ltd is in addresses with private equity finances to raise capital to support its growth plans, Managing Director Manoj Kumar Nambiar said. Promoted by the Aavishkaar Group, the Kolkata- grounded MFI is targeting Rs, 1000 crore as finances under operation in the current financial, including both debt and equity, he said. “We’re now in addresses with a many foreign PE finances to raise finances after our IPO plans were remitted. There’s enough eventuality to tap the request for coffers, and the RBI guidelines are favourable for performing of MFIs, the most prominent being deregulation of pricing of loans,” Nambiar told PTI. The MFI is keen to allow the exit of some being investors, as well as raise finances through issue of fresh shares.
Nambiar said AFS plans to raise Rs, 1800 crore, out of which Rs, 1000 crore will be through issue of fresh shares and the balance for being investors to make an exit. He said after finalising the deal with the PE finances, three being investors will exit, and it’s anticipated that the sale will be completed by September.
With a net worth of around Rs, 1023 crore as on March 2022, AFS aims at supporting 20 million families by 2025, Nambiar said. After the deal, the net worth will increase by a fresh Rs, 1000 crore. In February, AFS had filed a DRHP with SEBI for IPO, the validity of which was till April 2022. “The main reasons for dropping the IPO plans were the alternate and third swells of the COVID- 19 epidemic and the posterior Russia- Ukraine conflict, which led to request volatility while investors decided to hold back on their investments,” Nambiar said. PTI DC RBT
The company will take another shot at IPO after two- three times, he said.
Arohan Financial Services Ltd
Arohan Financial Services Limited is a leading NBFC-MFI with operations in financially under-penetrated Low Income States of India. Arohan provides income generating loans and other financial inclusion related products to customers who have limited or no access to financial services.
We are a part of the Aavishkaar Group, which provides business solutions to assist sustainable enterprises dedicated to social and environmental change, has advised a large number of organisations on inclusive business strategies and has provided significant amounts of venture capital funding to social impact businesses. We have a bank loan rating of A- (stable outlook), MFI grading of MF1 from CARE Ratings, a Social Performance rating of SP1, COCA Dimensions of C1, all of which are top-notch gradings. We were certified as a “Great Place to Work” and were ranked 86th among the best companies to work for in India by the Great Place to Work Institute India, in 2020. In the same year, we were in the top 25 companies among the banking, financial services and insurance industry, and among the top three NBFC-MFIs to be certified as a Great Place to Work. We were awarded the “Microfinance Organization of the Year” award by Access Assist at the Inclusive Finance India Awards 2018. We were also awarded the “Microfinance Institution of the Year” award in 2010 in the “Small and Medium Category” by Access Assist.
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