Arohan Financial Services in talks with PE funds to raise capital: MD

Promoted by the Aavishkaar Group, the Kolkata-based MFI is targeting Rs 7,000 crore as funds under management in the current fiscal, including both debt and equity, he said.

PTI

June 20, 2022 / 14:22 IST

(Representative Image)

Microfinance institution Arohan Financial Services Ltd is in talks with private equity funds to raise capital to support its growth plans, Managing Director Manoj Kumar Nambiar said. Promoted by the Aavishkaar Group, the Kolkata-based MFI is targeting Rs 7,000 crore as funds under management in the current fiscal, including both debt and equity, he said.

Promoted by the Aavishkaar Group, the Kolkata-based MFI is targeting Rs 7,000 crore as funds under management in the current fiscal, including both debt and equity, he said.

”We are now in talks with a few foreign PE funds to raise funds after our IPO plans were shelved. There is enough potential to tap the market for resources, and the RBI guidelines are favourable for functioning of MFIs, the most prominent being deregulation of pricing of loans, Nambiar told PTI.

The MFI is keen to allow the exit of some existing investors, as well as raise funds through issue of fresh shares.

Nambiar said AFS plans to raise Rs 1,800 crore, out of which Rs 1,000 crore will be through issue of fresh shares and the balance for existing investors to make an exit. He said after finalising the deal with the PE funds, three existing investors will exit, and it is expected that the transaction will be completed by September.

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