Arohan Financial Services Limited

Draft Red Herring Prospectus dated May 15, 2026

Summary

Arohan Financial Services Limited is proposing to raise ₹600.00 crore through a fresh issue of shares, alongside an offer for sale of 4,04,37,529 shares by existing shareholders. The document does not yet state the price.

The amounts for augmenting its capital base to meet future business requirements of the company towards onward lending and general corporate purposes are not yet stated.

The review found 1 point to read closely and 7 worth checking.

Read closely

1. Criminal proceedings against the company, its directors or individual promoters

How the capital was built

• The last priced issue of shares was a fundraise in 2 allotments between 10 Feb 2021 and 11 Feb 2021: 90,06,329 shares, mostly to promoters and others, at ₹210 each (5 allottees), 5.7% of the pre-issue capital, at 1.2 times the price of the previous issue 16 months earlier; it came about 5 years before this prospectus.
• Later allotments to employees or an employee trust (4, the latest on 29 Aug 2025 at ₹148 a share) are not counted as priced issues, since their price is set for staff rather than agreed with investors.
• From the first priced issue (27 Sept 1991, ₹10 in today's shares) to the last, the price per share rose 21 times over 29 years.

Conclusion

Of the 1 points to read closely, 1 concerns the promoters, management and their dealings (criminal proceedings against the company, its directors or individual promoters). These could not be scored automatically and need reading: group entities in the same business; guarantees given for group entities; promoters have limited experience in this business. These wait for the price and the final share count: shares issued shortly before the IPO at a deep discount to the issue price; low promoter holding after the issue. The pages to read are 41 and 611.