Arohan Financial Share Price

Arohan Financial Service Limited Unlisted Shares | Price & Updates

Buy

₹ 175.00

Sell

₹ 225.00

Overvalued

Company Overview

Arohan Financial Services Ltd is a leading NBFC-MFI engaged in the business of microfinance and microcredit targeting under-penetrated low income households. Founded in 2006, the company is now the largest NBFC in micro finance business in Eastern India and fifth largest in India based on Gross loan portfolio. Arohan Financial share price has been a significant aspect of the company’s trajectory. The promoters of the company are Avishkaar Venture Management Services Pvt Ltd (20.61%) and Intellectual Capital Advisory Services Pvt Ltd (13.71%). 

During February, 2021, the company filed DRHP with SEBI for approval to issue fresh equity of Rs 850 crores and offer for sale of 2.70 equity shares. 

Business Model

The company offers micro sized, unsecured loans (max Rs 75000) and micro-insurance products (term life and Health Insurance) with the average tenor of 12-24 months. The company markets its core products under ‘Saral’ and ‘Bazaar’ loans. 

As on 31-March-2021, the company had 737 branches in 231 districts across 17 states with Assets under management (AUM) of Rs 4,648 crores with net NPA ratio of 3.96%. Arohan Financial is the largest player in the Eastern India and fifth-largest NBFC-MFI in India. The company has a diversified portfolio across India’s top-5 states (West Bengal, Assam, Bihar, Odisha, and Uttar Pradesh). 

The company’s cost of borrowing was 10.64% during FY 2021 with 70% of the funding coming from banks. The company’s yield during FY 2021 was 20.68%, earning a spread of 9.92% to the company. The company reported CRAR of 24.27% and leverage ratio of 4.61 during FY 2021.

 

Registered Address

The registered office of the company is located at PTI Building, 4th Floor, DP-9, Sector V, Salt Lake, Kolkata, West Bengal.

SymbolArohan Financial Services Ltd
Face Value₹ 10 each
ISININE808K01017
DEMAT StatusNSDL/CDSL
Lot Size50

Key Highlights of Arohan Financial Limited & Arohan Financial Share Price 

  • Largest player in Eastern India and fifth largest NBFC in microfinance in India.
  • Stable business growth with around 46% CAGR in consolidated revenues during the last 3 years. 
  • Geographically diversified business model with 86% of its loan portfolio spread across India’s largest-5 states. 
  • Backed by financially strong promoters: Avishkaar group and I-Cap.

Ratio

RatioFY23FY22
Operating Margin52%53%
Net Profit Margin7%7%
Return on Equity 5%6%
Debt-Equity2.854.03
Current Ratio1.261.21
Dividend Payout Ratio0%0%

Financial Highlights

Particulars2022-232021-222020-212019-202018-192017-18
Total Income (₹ Crores) 10699201014938635327
PAT (₹ Crores) 7161-16012711230
Diluted EPS 5.845.05-14.5612.0512.273.35
Book Value per Share (₹) 110.4285.1679.7787.2667.3443.12
Equity (₹ Crores) 13381023959963681380

Financial Charts

Peer Comparison

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
Arohan Financial Services Ltd22596.61%40.33%5.29%2.8532.191.70110.42
Spandana Sphoorty Financial Ltd539793.00%5.97%0.41%1.9515.601.75429
Creditaccess Grameen Ltd2190523.70%12.10%17.80%3.1922.004.31327.00

Media Updates

Arohan Financial Services Ltd, which has been witnessing a steady improvement in disbursements and collections in the second quarter of this fiscal over Q1, has firmed up expansion plans to grow its portfolio further.

The company, which is looking to expand its footprint in newer geographies and strengthen presence in some of the existing towns and cities, is waiting for its capital raising plan to fructify to push ahead with the expansion programme.

Read more here: https://www.thehindubusinessline.com/money-and-banking/arohan-financial-looks-to-expand-its-footprint-in-newer-markets/article36572537.ece

Frequently Asked Questions

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid. 

The procedure to buy the Arohan Financial unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. 

When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.  

The Arohan Financial shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Arohan Financial Services Ltd unlisted shares, please visit the stock page on our website: www.delistedstocks.in 

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your Arohan Financial unlisted shares. 

But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.  

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. 

If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell Arohan Financial Services unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

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