Svatantra Microfin files Rs 3,000 crore IPO papers with Sebi

Svatantra Microfin, a non-banking finance company focused on microfinance and affordable housing loans, has filed draft papers with Sebi to raise up to Rs 3,000 crore through an initial public offering (IPO).The proposed IPO will comprise a fresh issue of shares worth Rs 1,500 crore and an offer for sale (OFS) of shares worth another Rs 1,500 crore. The company may also consider raising up to Rs 300 crore through a pre-IPO placement. If it goes ahead with the pre-IPO round, the amount raised will be reduced from the fresh issue size.The IPO filing comes as Svatantra looks to raise fresh capital to support the growth of its lending business, while some of its existing private equity investors are also looking to sell part of their holdings.EXISTING INVESTORS TO SELL SHARESThe Rs 1,500-crore OFS will be split between two existing investors. Advent International-controlled Violicina plans to sell shares worth Rs 1,064.8 crore, while Multiples Alternate Asset Management will sell shares worth Rs 435.2 crore. Violicina currently owns a 28.02% stake in Svatantra Microfin, while Multiples holds 11.45%. Ananya Birla and her firm Antimatter Media together hold a 59.97% stake in the company.Advent and Multiples had jointly invested Rs 1,930 crore in Svatantra Microfin in March 2024, according to the IPO documents.WHY IS SVATANTRA RAISING MONEY? The company plans to use the net proceeds from the fresh issue to increase its Tier I capital base. The additional capital will help it meet future capital requirements and support onward lending as its business and assets grow.Svatantra provides microfinance loans and also offers affordable housing finance through its subsidiary, Svatantra Micro Housing Finance Corporation.Its lending business is largely focused on women in rural areas, with the company targeting households with annual incomes of up to Rs 3 lakh.SVATANTRA'S AUM, BRANCHES AND BORROWERSSvatantra Microfin is India's second-largest microfinance institution by assets under management, according to the IPO filing.Its AUM stood at about Rs 21,100 crore as of March 2026, according to the filing cited by Reuters. Moneycontrol, which reported consolidated figures, put its AUM at Rs 23,817.8 crore as of March 2026.The company has built a pan-India network of 2,253 branches across 23 states and union territories and has around 43.1 lakh borrowers. Its AUM grew at a compound annual growth rate of 38.18% over the last three financial years.The company primarily serves borrowers in rural areas and focuses on providing access to credit to households with relatively low annual incomes.PROFIT JUMPS 46% IN FY26Svatantra Microfin reported a strong improvement in profitability in the financial year ended March 2026.Its profit rose 45.8% to Rs 649.4 crore in FY26 from Rs 445.4 crore in the previous financial year. Net interest income increased 30% to Rs 2,496.5 crore from Rs 1,920.3 crore.According to the IPO filing cited by Reuters, revenue from operations increased nearly 20% to Rs 4,121 crore during FY26.The company's strong growth in AUM and profits comes as it prepares to access the public markets for the first time.WHO WILL MANAGE THE IPO?Axis Capital, Avendus Capital, IIFL Capital Services, Kotak Mahindra Capital Company and SBI Capital Markets have been appointed as the book-running lead managers for the issue.Svatantra Microfin was the first institution to receive the NBFC-MFI licence introduced by the Reserve Bank of India in 2011, according to the filing.The IPO will therefore give public-market investors an opportunity to invest in one of India's larger microfinance lenders, while allowing the company to raise capital for further expansion and existing investors to partially exit their holdings.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsPublished On: Aug 14, 2026 12:15 IST