Svatantra Microfin files ₹3,000 crore IPO papers with Sebi; fresh issue, OFS details explained

Svatantra Microfin, one of India's leading microfinance-focused non-banking financial companies (NBFCs), has filed draft red herring prospectus (DRHP) papers with the Securities and Exchange Board of India (Sebi) for a ₹3,000 crore initial public offering (IPO).

The proposed public issue comprises a fresh issue of equity shares worth ₹1,500 crore and an offer for sale (OFS) of ₹1,500 crore by existing shareholders. The company may also raise up to ₹300 crore through a pre-IPO placement, which would proportionately reduce the size of the fresh issue if completed.

The IPO aims to support the company's future lending growth while providing a partial exit opportunity to existing private equity investors.

IPO structure and pre-IPO placement

According to the draft papers, the IPO has been divided equally between a fresh issue and an offer for sale.

The company has also reserved the option to raise up to ₹300 crore before the IPO through a pre-IPO placement. If such fundraising takes place, the amount raised will be adjusted against the fresh issue component.

The proceeds from the fresh issue will primarily be used to strengthen the company's capital position and support future business expansion.

Existing investors to offload stake

The ₹1,500 crore offer for sale will be undertaken by two existing investors.

Advent International-backed Violicina plans to sell shares worth ₹1,064.8 crore, while Multiples Alternate Asset Management intends to offload shares worth ₹435.2 crore.

As per the draft filing:

• Violicina holds a 28.02% stake in the company.
• Multiples owns 11.45%.
• Promoter Ananya Birla, along with Antimatter Media, collectively owns 59.97% of Svatantra Microfin.

Advent International and Multiples had jointly invested ₹1,930 crore in the company in 2024.

How will the IPO proceeds be used?

Svatantra Microfin said the net proceeds from the fresh issue will be used to strengthen its Tier-I capital base.

A stronger capital position will enable the lender to meet future regulatory capital requirements while supporting the expansion of its loan portfolio.

The company operates in the microfinance segment and also provides affordable housing finance through its subsidiary, Svatantra Micro Housing Finance Corporation.

Its primary customer base consists of women borrowers in rural India, targeting households with annual incomes of up to ₹3 lakh.

Business performance

According to the IPO filing, Svatantra Microfin is India's second-largest microfinance institution by assets under management (AUM).

As of March 2026:

• Assets under management stood at around ₹21,100 crore.
• The company operated 2,253 branches across 23 states and Union Territories.
• It served nearly 43.1 lakh borrowers nationwide.
• Its AUM recorded a 38.18% CAGR over the past three financial years.

The lender continues to focus on expanding financial access in underserved rural markets.

FY26 financial performance

Svatantra Microfin reported healthy growth during FY26.

Its net profit increased 45.8% to ₹649.4 crore, compared to ₹445.4 crore in the previous financial year.

Meanwhile, net interest income (NII) rose 30% to ₹2,496.5 crore, up from ₹1,920.3 crore a year earlier.

Revenue from operations also climbed nearly 20% to approximately ₹4,121 crore, reflecting steady growth in lending activity.

Who are the lead managers?

The IPO will be managed by a consortium of investment banks acting as book-running lead managers, including:

• Axis Capital
• Avendus Capital
• IIFL Capital Services
• Kotak Mahindra Capital Company
• SBI Capital Markets

Svatantra Microfin was the first institution to receive the NBFC-MFI licence introduced by the Reserve Bank of India in 2011. The proposed IPO will allow the company to strengthen its balance sheet while offering public investors an opportunity to participate in one of India's largest microfinance lenders.