Arohan Financial Services, a microfinance company under the Aavishkaar Group, is preparing to file its draft red herring prospectus (DRHP) for an initial public offering (IPO) worth ₹1,400 crore (approximately $168 million USD). This IPO will consist of a ₹600 crore primary issue and ₹800 crore from an offer for sale (OFS), primarily from long-time investors like the Michael & Susan Dell Foundation and Tano Capital. Managing director Manoj Nambiar indicated that the company aims to be ready for a market rebound, as the microfinance sector shows signs of recovery after experiencing significant asset quality stress over the past two years. The gross non-performing assets ratio has improved to 1.6%, down from 2.9% a year ago. Arohan's assets under management stand at ₹6,300 crore (approximately $756 million USD), with significant contributions from states like Bihar, Uttar Pradesh, and West Bengal. The company had previously announced a ₹1,500 crore IPO plan but scaled it down due to market volatility following the Iran war. Arohan has been attempting to go public since 2019, receiving regulatory approval in 2021, but faced delays due to ongoing challenges in the microfinance sector.